European stocks retreated on Wednesday after a rise in global bond yields raised investor concerns that higher interest rates could remain in place for longer, even as more economic data bolsters bets on rate cuts.
The pan-European STOXX 600 index slipped 0.3%, with losses across almost all markets and sectors in the region.
The oil and gas sector was the only sectoral winner in early trading, rising 0.8%, tracking higher oil prices, according to Reuters.
The yield on the 10-year US Treasury note rose to 4.5639%, while the yield on the 10-year German bond rose to a one-month high of 2.627%, as traders digested an unexpected improvement in US consumer confidence on Tuesday.
Investors will now turn their focus to inflation data from Germany later today, which is expected to show some moderation on a monthly basis in May.
BHP shares were steady as it sought to extend talks with Anglo American over its £38.6 billion ($49.20 billion) takeover offer.
Anglo American shares fell 1.6% during today's trading.
