European shares decline on rising bond yields

European shares faced declines on Wednesday amid concerns over rising global bond yields, suggesting prolonged elevated interest rates, while investors awaited economic data to solidify expectations for rate cuts, according to Reuters.

The pan-European STOXX 600 index dropped 0.3 per cent by 07:08 GMT, with nearly all markets and sectors trading down, except for oil and gas, which rose 0.8 per cent in early trade, tracking higher oil prices.

US 10-year Treasury yields surged to 4.5639  per cent, while Germany’s 10-year bond yield hit a one-month high, last at 2.627 per cent, following an unexpected uptick in US consumer confidence on Tuesday.

Focus shifted to Germany’s inflation data expected later in the day, anticipating some moderation on a monthly basis in May.

BHP Group shares remained flat as it sought additional time to engage with Anglo American over its 38.6 billion pounds ($49.20 billion) offer, while Anglo American’s stock slipped 1.6 per cent.

Conversely, shares of Royal Mail’s parent company, International Distributions Services, surged 3.1 per cent after agreeing to a 3.57 billion pound ($4.55 billion) formal takeover offer by Czech billionaire Daniel Kretinsky.

However, Delivery Hero plummeted to the bottom of the STOXX index, down 3.5 per cent, following a downgrade by Morgan Stanley to equal-weight from overweight.