FX.co ★ European Stocks Fall to 3-1/2-Month Low

European equities started the fourth quarter sharply lower on Thursday, as the continued surge in global government bond yields further dampened risk appetite. The STOXX 50 and STOXX 600 each dropped more than 1%, hitting their lowest levels in roughly three and a half months, as investors reassessed the likelihood that major central banks will keep interest rates elevated for an extended period. Financials led the move lower, with bank stocks sliding more than 3.5%. The automobiles and parts sector and basic resources also fell between 1.5% and 2%, while chemicals, retail financial services, real estate, and construction and materials all posted declines of more than 1%. By contrast, technology stocks were among the few gainers, supported by strength in global peers after Micron Technology issued an upbeat outlook. Within the major STOXX 50 constituents, Banco Santander lost nearly 4%, LVMH fell more than 2%, and both Linde and L’Oréal declined by around 2%.