(Reuters) – European stocks edged lower on Monday as elevated government bond yields prompted investors to pull out of equities at the end of a positive year for regional markets.
The pan-European STOXX 600 index dropped 0.4% by 0819 GMT, with technology and industrial goods makers leading broad-based declines.
Trading volumes were thin ahead of the New Year holiday, with several markets in Europe set to close early on Tuesday.
The 10-year German bund yield traded at its highest since mid-November, tracking a rise in U.S. Treasury yields, as uncertainty around monetary policy next year and prospects of inflationary measures under a Trump presidency weighed on investor sentiment.
The STOXX 600 is still on course for a 5.9% annual rise, with German stocks leading regional gains and French shares lagging.
Siemens (ETR:SIEGn) Healthineers dipped 0.6% after Siemens AG (OTC:SIEGY)’s Chief Financial Officer Ralf Thomas told the Handelsblatt newspaper that the German technology group is reviewing its majority stake in its medical technology unit.
BayWa surged 21% after the Munich-based trader of farming supplies and produce said it had reached a restructuring agreement with its major shareholders and financiers.