ROTTERDAM: European shares fell 1% on Monday as hopes of a vaccine-led global economic recovery fuelled a rally in commodities and raised concerns over the risk of higher inflation. The pan-European STOXX 600 index was on course for its worst day this month, led by declines in technology companies and retail stocks.
Germany’s benchmark stock index fell the most among its European peers, down 1.3%.
Yields on Germany’s benchmark 10-year bond jumped to their eight-month high, putting upward pressure on borrowing costs in the euro area.
British pub operator Mitchells & Butlers fell 1.5% after it reported a plunge in sales as all its sites have been forced shut under the latest lockdown, and launched an open offer to raise 351 million pounds ($491.47 million).
French car parts maker Faurecia fell 1.5% even as it targeted its sales close to 25 billion euros ($30.29 billion) and an operating margin above 8% of sales by 2025. Britain’s FTSE 100 dropped 1%, while investors awaited Prime Minister Boris Johnson’s plan to gradually reopen the battered economy.
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