European stock markets fall amid rising sovereign bond yields

European stock markets closed significantly lower on Friday, driven by rising global sovereign bond yields and weakness in the telecommunications and energy sectors. The pan-European Stoxx 600 index fell 1.11% to 635.45 points.

Major national indices also saw declines: London’s FTSE 100 dropped 1.45%, Frankfurt’s DAX fell 1.63%, Paris’s CAC 40 decreased 1.49%, Milan’s FTSE MIB lost 1.60%, Madrid’s Ibex 35 declined 1.67%, and Lisbon’s PSI 20 fell 1.33%.

European Central Bank President Christine Lagarde noted that the rise in sovereign yields is a global phenomenon, while Vice President Boris Vujcic indicated that energy costs are influencing expectations for interest rate hikes. In Germany, wholesale inflation rose more than expected, reaching an annual rate of 4.6% in August. The telecommunications sector faced heavy pressure, with the Stoxx 600 sub-index dropping 3.4%, led by losses in Airtel Africa, BT, Deutsche Telekom, and Orange.