FX.co ★ European Shares Subdued As Bond Yields Climb After US Jobs Data

European stocks faced a subdued start to the week on Monday, largely impacted by the pressure from rising bond yields following the release of robust U.S. jobs data from the preceding week. Market sentiment took another hit with the news that Germany's factory orders experienced a decline sharper than anticipated in August.

Data from Destatis showed that incoming new orders contracted by 5.8% in August on a monthly basis, overturning the revised 3.9% growth witnessed in July. Analysts had expected a more modest decline of 1.9%. This marked the most significant drop since January, when orders fell by 10.9%.

In other economic updates, data from Eurostat indicated that retail sales volume in the Eurozone increased by 0.2% from the previous month in August, aligning with expectations.

The pan-European STOXX 600 index edged down by 0.3% to 516.91 after having advanced by 0.4% on Friday. Germany’s DAX lost 0.5%, and France's CAC 40 slipped by 0.2%, while the UK's FTSE 100 remained mostly unchanged with a slight upward tendency.

Telecom Italia S.p.A. saw a 1.3% decline after its board authorized CEO Pietro Labriola to negotiate an exclusive offer regarding the acquisition of TI Sparkle S.p.A., presented by the Ministry of Economy and Finance and Retelit S.p.A. Meanwhile, Richemont, the owner of Cartier, rose by 0.6% following its decision to sell its struggling digital division Yoox Net-a-Porter to online retailer Mytheresa.

British property firm Sirius Real Estate dropped by 1.1%. The company, which owns and manages branded business and industrial parks, reported a 14.9% increase in its rent roll for the first half of the year, partially driven by its ongoing asset acquisition initiatives.

3i Infrastructure saw a gain of about 1% after receiving a binding offer for its roughly 33% stake in Valorem, an independent developer and producer of renewable energy in Europe. The offer came from AIP Management P/S and several co-investors.

Heidelberg Materials rose by 0.5%, spurred by a report that India's Adani Group has entered discussions to acquire Heidelberg's Indian cement operations, a deal potentially valued at approximately $1.2 billion.