Written by Sruthi Shankar
(Reuters) – European stocks fell on Monday as higher government bond yields prompted investors to withdraw from stocks at the end of a year that was positive for some regional markets.
By 0947 GMT, the European index fell 0.3 percent, with technology and industrial goods stocks leading the broad declines.
Trading volumes were thin ahead of the New Year holiday on Wednesday. Stock markets in Germany, Italy and Switzerland are closed on Tuesday as well, while the UK and French markets have a half-day trading session.
Germany's 10-year bond yield traded at its highest levels since mid-November, tracking a rise in US Treasury yields, as uncertainty over monetary policy next year and the prospect of inflationary policies under a Trump presidency weighed on investor sentiment.
The STOXX 600 is still on track for a 5.9% annual rise, with German stocks leading regional gains and French stocks declining.
However, the European index is still lagging behind the 25% rise this year, as interest rate cuts by the Federal Reserve and a boom in artificial intelligence trading boosted Wall Street's tech giants.
“The rise in the S&P 500 and Nasdaq underscores the victory of the technology-fueled market, although last Friday’s sell-off, triggered by rising Treasury yields, was a sobering reminder of the ongoing concerns about prices,” said Matt Britzman, chief equity researcher at the bank. “Interest.” Hargreaves (Longitude:) Lansdowne.
The German index fell 0.3% on the last trading day of this year, but it seemed on its way to achieving an annual increase of 19%, making it the best performer this year among the major European stock exchanges.
On the flip side, 40 is set for a 2.5% annual decline, driven by concerns about the country's spiraling fiscal deficit and political unrest.
Siemens (ETR:) Healthineers stock fell 1.2% after Siemens AG (OTC:) CFO Ralf Thomas told newspaper Handelsblatt that the German technology group is reviewing its majority stake in its medical technology unit.
BayWa stock rose 12% after the Munich-based agricultural supplies and agricultural products trader said it had reached a restructuring agreement with major shareholders and financiers.
