European stocks are declining, pressured by mixed corporate results and high bond yields

European stocks retreated on Friday from multi-month highs hit during the previous session, as investors digested a mixed batch of corporate earnings reports and bond yields rose after the Bank of Japan adjusted monetary policy.

And by 0716 GMT, the pan-European STOXX 600 index was down 0.3%, having closed on Thursday at its highest level in a year and a half after the European Central Bank raised interest rates as expected but indicated it might stop raising them in September.

European government bond yields rose to match the gains in Japanese bond yields.

Capgemini shares fell 7.5 percent after the French information technology consultancy group said it would invest 2 billion euros ($2.19 billion) in artificial intelligence over three years.

French pharmaceutical company Sanofi fell 2.5 percent, although it raised its profit forecast.

But AMS Osram rose 12.5 percent after the Austrian sensor maker presented a reorganization strategy and reported second-quarter results that were in line with its expectations.

Hermes rose 3.8 percent as sales increased in the second quarter.