European stocks decline as bond yields remain high by Reuters

(Reuters) – European stocks fell on Monday as higher government bond yields prompted investors to withdraw from stocks at the end of a positive year for regional markets.

By 0819 GMT, the European index fell 0.4 percent, with technology and industrial goods stocks leading the broad declines.

Trading volumes were thin ahead of the New Year holiday, with many markets in Europe scheduled to close early on Tuesday.

Germany’s 10-year bond yield traded at its highest levels since mid-November, tracking a rise in US Treasury yields, as uncertainty over monetary policy next year and the prospect of inflationary measures under a Trump presidency weighed on investor sentiment.

The STOXX 600 is still on track for a 5.9% annual rise, with German stocks leading regional gains and French stocks falling.

Siemens (ETR:) Healthineers stock fell 0.6% after Siemens AG (OTC:) CFO Ralf Thomas told newspaper Handelsblatt that the German technology group is reviewing its majority stake in its medical technology unit.

BayWa stock rose 21% after the Munich-based agricultural supplies and agricultural products trader said it had reached a restructuring agreement with major shareholders and financiers.