(Reuters) – A three-day rally in European stocks was clipped on Thursday as a renewed jump in U.S. bond yields hit risk appetite, with heavyweight miners and technology stocks leading the retreat.
The pan-European STOXX 600 index fell 0.5%, with miners dropping 3.4%. UK-listed shares of Rio Tinto and BHP Group shed 5.9% and 5.0% respectively, after their Australia-listed stocks were hit by ex-dividend trading.
Technology stocks, the driver of the market’s rebound from pandemic lows, fell close to 2% on overnight weakness in their Wall Street peers as rising yields turned the spotlight on frothy valuations.
Dutch firm ASML Holding NV dropped 3.1% despite news that it had extended a deal to sell chip manufacturing equipment to China’s largest chipmaker SMIC.
“While one can understand why investors are concerned about valuations in the U.S., particularly around the tech sector… the same can’t be said in Europe where valuations are