European Stocks Slip as U.S. Jobs Euphoria Fades, Higher Bond Yields Pressure Real Estate and Utilities

European stocks edged lower on Monday as the initial optimism from strong U.S. jobs data faded, with rate-sensitive sectors like real estate and utilities feeling the impact of rising bond yields.

As of 0726 GMT, the pan-European STOXX 600 index had dipped 0.2%, with real estate and utilities sectors falling 1% and 0.5%, respectively.

Friday’s robust U.S. labor market data had briefly lifted markets by alleviating recession fears, but it also led to a reassessment of interest rate cut expectations. As a result, bond yields surged, with the German 10-year bond yield hitting a one-month high.

Individual Stock Highlights:

• Richemont gained 1.3% after the Cartier owner announced it would sell its Yoox Net-A-Porter online fashion and accessories business to German luxury fashion retailer Mytheresa.
• Heidelberg Materials surged 5.6% following reports that Adani Group is in talks to acquire its Indian cement operations, in a deal potentially valued at around $1.2 billion.