European stocks decline on rising yields and China problems

European stocks continued to decline on Tuesday as high bond yields pressured the interest-rate-sensitive technology sector, while stocks exposed to China continued to weaken due to fears of a slowdown in the world’s second-largest economy.

The European STOXX 600 index fell 0.7 percent by 0710 GMT, with the benchmark ten-year German government bond yield reaching its highest levels since 2011.

Technology stocks, whose valuations are under pressure as yields rise, fell by about 2 percent, leading sector losses.

Shares of real estate companies sensitive to interest rates fell 1.3 percent.

Shares of luxury companies exposed to China, such as Moët Hennessy Louis Vuitton (LVMH) and Richemont, fell by 1.5 percent and 2.5 percent, respectively, amid continuing concerns about the Chinese real estate sector, which was affected by the crisis.

Rio Tinto Group shares fell by 0.4 percent after the majority-owned uranium unit (Energy Resources of Australia) earlier in the day expected material cost overruns and delays related to the rehabilitation of the Ranger mine in the Northern Territory in Australia.