European Stocks Fall to 3-1/2-Month Low

European stocks opened the fourth quarter sharply lower on Thursday as rising global government bond yields continued to weigh on risk appetite. The STOXX 50 and STOXX 600 each fell more than 1%, reaching their lowest levels in about three and a half months as investors adjusted to expectations that major central banks could keep borrowing costs elevated for longer. Financial stocks led the declines, with banks falling more than 3.5%, while automobiles and parts and basic resources dropped between 1.5% and 2%. Chemicals, retail financial services, real estate, and construction and materials also posted losses of more than 1%. Technology stocks were among the few gainers, tracking stronger global peers after Micron Technology delivered an upbeat outlook. Among major STOXX 50 constituents, Banco Santander fell nearly 4%, while LVMH declined more than 2% and both Linde and L’Oréal lost around 2%.