European stocks decline on rising yields and China fears

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

According to Reuters, the European Stoxx 600 index fell 0.7% by 0710 GMT, with the yield on standard 10-year German government bonds reaching their highest levels since 2011.

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

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

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

Shares of Rio Tinto Group (LON:RIO) fell by 0.4% after the majority-owned uranium unit (Energy Resources of Australia) earlier today expected material cost overruns and delays related to the rehabilitation of the Ranger mine in the Northern Territory of Australia.