European shares fall as government bond yields rise

European shares fell on Friday as government bond yields rose and as investors awaited a U.S. jobs report expected to provide clues on the path of U.S. monetary policy.

The pan-European STOXX 600 index fell 0.1 percent, although it was on track for its best weekly gain in six weeks.

European government bond yields remained elevated, with the German 10-year yield hitting a six-month high. A sub-index of utilities shares fell 1 percent.

The U.S. jobs report, due out later today, is expected to show a slowdown in job growth in December, while the unemployment rate is likely to remain at 4.2 percent, supporting the Federal Reserve’s cautious approach to interest rate cuts this year.

The food and beverage sub-index was among the biggest losers in the early hours of the session, with Pernod Ricard and Heineken both down about 1 percent.

In individual stocks, Ubisoft plunged 8 percent after the French video game giant announced another delay to the release of its blockbuster Assassin’s Creed franchise.