European stocks fell on Tuesday, extending the previous session’s losses. The STOXX 50 dropped 0.8%, hitting its lowest level in nearly two months, while the STOXX 600 declined 0.6% to a three-month low. Rising oil prices added to inflation concerns, with Brent crude trading above $107 a barrel. Bond yields also climbed to multi-year highs, further pressuring equity valuations and weighing on investor sentiment.
Banks were among the weakest performers, with UBS down 3.6%, Deutsche Bank 3.5%, UniCredit 2.4% and HSBC 1.6%. Other major names also traded lower: LVMH lost 1.8%, L’Oréal fell 1.1% and Siemens slipped 0.8%. In contrast, ASML Holding gained 0.9%, staging a modest rebound after a sharp decline in the previous session. Defense-related stocks fared better as well, with Thales up 1.5% and Rheinmetall 0.8% higher.
