European stocks are under pressure as US bond yields continue to rise

European stocks extended losses on Tuesday as rising US Treasury yields and the dollar pressured high-risk assets such as stocks and commodities, while a pessimistic outlook from the financial brokerage sector weighed on fashion retail companies.

Strong economic data and the US Congress’ approval of a financing bill to avoid a federal government shutdown led to the dollar rising to its highest level in 11 months, as well as ten-year Treasury bond yields to a new peak not seen in years.

The European STOXX 600 index fell 0.3 percent, hovering around the lowest level in six months that it touched in the previous session. Shares of utility and mining companies recorded the largest losses at the sector level.

Shares of German online fashion retailer Zalando fell 2.8 percent after Deutsche Bank lowered its forecast for its adjusted earnings before interest and taxes, while shares of British luxury goods company Burberry fell 3.1 percent after UBS lowered its recommendation.

In the health care sector, Novo Nordisk shares jumped 1.9 percent after a committee at the US Patent Office rejected requests from Mylan Pharmaceuticals to review the validity of Novo’s patents covering the active ingredient in weight loss and diabetes medications.