Mining and technology sectors keep European stocks under pressure

European shares eased slightly in early trading on Monday, dragged down by a slump in the mining sector as investors worried about a sharp economic slowdown in China due to anti-Covid-19 restrictions while rising US bond yields kept technology stocks under pressure.

The pan-European STOXX 600 index was down 0.1 percent by 0711 GMT, hovering near its lowest level since mid-March hit on Friday.

Mining stocks fell 1.6 percent, as Chinese iron ore futures fell more than 6 percent due to concerns about demand in the world’s second-largest economy.

Technology shares fell 1.0 percent as US bond yields rose to new highs thanks to expectations that the Federal Reserve will raise interest rates at a faster pace to combat rising inflation.

Chip maker Infineon fell 2.2 percent despite the company raising its full-year forecast as it benefits from a global shortage in semiconductors.

Dutch postal company PostNL plunged 12.1 percent after it cut its full-year forecast and reported a 75 percent drop in core earnings, warning that economic uncertainty, rising inflation and pressure on e-commerce volumes were making 2022 “more challenging than previously expected.” “.