European Stocks Slip as Euphoria Fades

(Reuters) – European stocks slipped on Monday as the initial euphoria over strong U.S. jobs data last week faded and rate-sensitive sectors such as real estate and utilities came under pressure from higher bond yields.

The pan-European STOXX 600 index was down 0.2%, as of 0726 GMT, with real estate and utilities sectors losing 1% and 0.5%, respectively.

The benchmark index climbed on Friday after blowout U.S. labour market data dispelled fears of a recession and spurred a sharp paring of rate-cut expectations. That sent bond yields higher across the board, with the German 10-year bond yield trading at a one-month high.

Among single stocks, Richemont rose 1.3% after the Cartier owner agreed to sell its Yoox Net-A-Porter (BIT:YNAP) online fashion and accessories business to German luxury fashion platform Mytheresa.

Shares of Heidelberg Materials climbed 5.6% following a report that the Adani Group is in talks to buy the Indian cement operations of Heidelberg Materials in a deal that could be worth about $1.2 billion.