# STOXX 600 sinks to six-month low on higher bond yields
Published: 2023-10-02
Category: Headlines
Category URL: https://blockchaintribune.com/category/headlines/
Meta Title: STOXX 600 Hits Six-Month Low Due to Higher Bond Yields
Meta Description: European stocks drop due to rising bond yields and sluggish factory activity in the euro zone, hitting its lowest since March.
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Tag URLs: h2 (https://blockchaintribune.com/tag/h2/)
URL: https://blockchaintribune.com/stoxx-600-sinks-to-six-month-low-on-higher-bond-yields/

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## STOXX 600 sinks to six-month low on higher bond yields   By Sruthi Shankar, Shristi Achar A and Siddarth S    (Reuters) -European stocks kicked off the final quarter on a negative note as higher bond [yields](https://blockchaintribune.com/analysis-watch-out-risk-assets-the-rout-in-bonds-is-coming-your-way/) pressured equities and as data showed factory activity in the euro zone remained in a broad-based downturn.    The pan-European STOXX 600 index reversed early gains to fall 1.0% on Monday, hitting its lowest intra-day low in since end of March.    The euro zone’s benchmark German 10-year government bond yield rose to 2.922%, towards the 12-year high hit last week.    “(The fall in STOXX) is just so closely linked with what we’re seeing in [bond](https://blockchaintribune.com/telegram-secures-330-million-in-bond-sales/) markets at this point. We’re still seeing yields rising and that’s probably unsettling some investors,” said Craig Erlam, Senior Market Analyst, OANDA.    Euro [zone](https://blockchaintribune.com/euro-zone-investor-morale-hits-two-year-high-in-april/) manufacturing activity remained mired in a deep and broad-based downturn in September, according to a survey which showed demand shrank at a pace rarely surpassed since the data was first collected in 1997.    HCOB’s final euro zone manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global, dipped to 43.4 in September from August’s 43.5, matching a preliminary estimate.    All European indexes traded in the red, with Germany’s DAX index down 0.9%.    Voucher and card provider Edenred plunged 11% to the bottom of STOXX 600, after a French minister’s comments on a possible commissions cap on meal vouchers in France.    Shares of peer Sodexo also lost 3.3%.    The benchmark STOXX 600 marked its first quarterly decline of the year on Friday, dented by concerns about a sputtering Chinese economy and interest rates staying elevated for longer.    Among other stocks, debt-burdened Casino slid 7.5% after the French retailer said it had completed the sale of a first set of 61 stores in France to Groupement Les Mousquetaires and extended its purchasing alliance to include private-label food products.    BAE Systems added 1.1% after Britain awarded the defence company a 4 billion pound ($4.89 billion) contract as part of the AUKUS programme with Australia and the U.S. to build attack submarines.    Swiss-listed sensor maker Ams Osram jumped 3.8% after Jefferies said that demand trends will “progressively improve” over the next two years, even as it cut its price target on the stock.    (Reporting by Sruthi Shankar, Siddarth S and Shristi Achar A in Bengaluru; Editing by Rashmi Aich, Eileen Soreng and Christina Fincher)


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