European shares fell on Monday as the initial market euphoria following strong U.S. jobs data last week faded, and interest rate-sensitive sectors such as real estate and utilities came under pressure from rising bond yields.
The pan-European STOXX 600 index fell 0.2%, with the real estate and utilities sectors losing 1% and 0.5% respectively, according to Reuters.
European stocks rose on Friday after strong U.S. labor market data eased recession fears and prompted a sharp downgrade of expectations for interest rate cuts.
This sent bond yields broadly higher, with the German 10-year bond yield trading at a one-month high.
Among individual stocks, Richemont rose 1.3% after the Cartier owner agreed to sell its online fashion and accessories business Yoox Net-a-Porter (YNAP) to German luxury fashion platform MyTheresa.
Shares of Heidelberg Materials rose 5.6% after a report that Adani Group is in talks to buy Heidelberg Materials' Indian cement operations in a deal that could be worth about $1.2 billion.
