European Shares Subdued As Bond Yields Climb After US Jobs Data

European stocks were subdued on Monday due to pressure from higher bond yields following robust U.S. jobs data released last week.

Sentiment was also dented after official data showed Germany’s factory orders declined at a faster-than-expected pace in August.

According to preliminary figures from data Destatis, incoming new orders contracted 5.8 percent on a monthly basis in August, reversing July’s upwardly revised 3.9 percent expansion. Orders were expected to fall 1.9 percent.

Further, this was the steepest decline since January, when orders had fallen 10.9 percent.

Separate data from Eurostat revealed that Eurozone retail sales volume rose 0.2 percent month-on-month in August, matching expectations.

The pan European STOXX 600 dipped 0.3 percent to 516.91 after rising 0.4 percent on Friday.

The German DAX gave up half a percent and France’s CAC 40 slipped 0.2 percent while the U.K.’s FTSE 100 was little changed with a positive bias.

Telecom Italia S.p.A. fell 1.3 percent after its board gave the mandate to its CEO Pietro Labriola to negotiate exclusive offer, regarding the purchase of TI Sparkle S.p.A., received from the Ministry of Economy and Finance and Retelit S.p.A.

Cartier owner Richemont added 0.6 percent after agreeing to sell its struggling digital business Yoox Net-a-Porter to online retailer Mytheresa.

Sirius Real Estate dropped 1.1 percent. The British property company that owns and operates branded business and industrial parks said its rent roll for the first half increased 14.9 percent from last year, partly helped by the ongoing asset acquisition program.

3i Infrastructure gained about 1 percent after it received a binding offer for its approximately 33 percent stake in Valorem, an independent European renewable energy developer and power producer, from funds managed by AIP Management P/S and from certain other co-investors.

Heidelberg Materials rose half a percent after a report that India’s Adani Group has entered into talks to acquire the German company’s Indian cement operations in a deal that could be worth about $1.2 billion.

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