European equities extended declines at the start of the week as rising bond yields and higher oil prices weighed on investor sentiment. The EuroStoxx 50, the regional benchmark, fell 0.2% to 6,471 points by late morning, while the Swiss SMI slipped 0.2% to 14,374 points.
The Stoxx Europe 600 Real Estate index dropped to its lowest level since mid-July, reflecting pressure on interest-rate-sensitive sectors. German 10-year Bund yields climbed to their highest since 2009, reinforcing the headwind for growth-oriented equities. Technology shares in the Stoxx Europe 600, particularly semiconductor-linked firms, also came under pressure after U.S. chipmakers posted weak performance on Friday.
Comments from Federal Reserve policymaker Kevin Warsh at the Jackson Hole symposium heightened expectations of a September rate hike, further dampening risk appetite. Meanwhile, energy stocks bucked the trend, with the Stoxx Europe 600 Oil & Gas and Chemicals indices rising as geopolitical tensions in the Middle East supported crude prices. Brent crude futures briefly exceeded $80 per barrel following reports of U.S. military strikes on Iranian targets.
Top performers in the EuroStoxx 50 included Eni and TotalEnergies, while Siemens Energy lagged after weakness in the broader industrial and AI-related segments dragged on European markets.
