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European markets close lower as German benchmark yield hits 12-year high

Hannah Ward-Glenton
Holly Ellyatt

This is CNBC's live blog covering European markets.

European markets closed lower Monday as investors reflected on a spate of central bank decisions last week and the prospect of higher-for-longer interest rates.

European markets


The pan-European Stoxx 600 index ended down 0.6%, with major bourses and almost all sectors in negative territory.

Travel and leisure stocks led losses with a 3% decline, followed by household goods, which dropped 2%.

The Bank of England and the Swiss National Bank opted to pause their interest rate hiking cycles last week, in contrast to the "dovish hike" delivered by the European Central Bank on Sept. 14.

The latest interest rate decisions showed that "all central banks are coping with the same triple dilemma: how to balance between slowing economies, still too high inflation and the delayed impact of unprecedented rate hikes," Carsten Brzeski, global head of macro at Dutch bank ING, told CNBC.

Elsewhere, U.S. stocks were mixed as they entered the last week of trading in September. Stocks stateside have struggled this month as the Federal Reserve signaled higher interest rates for longer, sending bond yields rising.

Asia-Pacific markets were mixed overnight as investors looked ahead to inflation data from across the region. Singapore and Australia are expected to report inflation figures for August this week, while Japan will release inflation data for the Tokyo region, which is seen as an indicator of nationwide trends.

Europe stocks close lower

European stock markets fell on Monday, marking a third straight session of losses with focus on the potential for higher for longer rates.

The Stoxx 600 index dropped 0.6%, with Germany's DAX down 1%, France's CAC 40 down 0.9% and the U.K.'s FTSE 100 0.8% lower.

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Stoxx 600 index.

— Jenni Reid

World trade falls 0.6% in July

The volume of trade across the world dropped 0.6% month-on-month in July, according to the CPB World Trade Monitor.

World industrial production also dropped, down 0.1%, despite a 0.2% uptick in June. The figure was better than expected, with forecasts suggesting production would fall 0.4%.

— Hannah Ward-Glenton

U.S. stocks open lower Monday

U.S. stocks opened lower Monday.

The Dow Jones Industrial Average dipped 68 points, or 0.2%. The S&P 500 slipped 0.3%, while the Nasdaq Composite dropped 0.5%.

— Sarah Min

Criticism of European Central Bank is unwarranted, says Bank of France’s de Galhau

François Villeroy de Galhau, governor of the Bank of France and ECB member, discusses his current perspectives on the European Central Bank's monetary policy.

Criticism of European Central Bank is unwarranted, says Bank of France's de Galhau
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Criticism of European Central Bank is unwarranted, says Bank of France's de Galhau
Squawk Box Europe

German 10-year bond yield hits 12-year high

Germany's 10-year bond yield hit its highest point since 2011, according to Reuters, as euro zone yields more widely also increased.

Investors are looking ahead to inflation data set for release this week, which will influence the European Central Bank's next move.

Germany's 10-year bond yield was last up 4 basis points, at 2.78% after hitting its highest level since July 2011 at 2.783%. The move is likely linked to German economic data continuing to paint a bleak picture.

German business sentiment dropped for a fifth consecutive month according to Ifo data, with the institute saying the outlook for the months ahead in construction was "extremely pessimistic."

The wider mood in the German economy "remains bad," the Ifo said, as translated by CNBC.

— Hannah Ward-Glenton

European markets open lower

European markets opened lower, with all sectors in the red.

The pan-European Stoxx 600 index was down 0.3% in early trade, with all sectors in negative territory. Mining stocks led losses with a 1.9% drop, followed by travel and leisure, which fell 1.4%.

— Hannah Ward-Glenton

CNBC Pro: Goldman expects 'healthy' growth at these 3 Indian banking stocks – giving one nearly 50% upside

Goldman Sachs has forecast "healthy" growth in new lending at three major Indian banks over the next six months, which could lead to a significant upside for those stocks.

The Wall Street bank said Indian bank stocks have underperformed over the past three to six months despite a positive outlook for lending growth in the sector.

It named three lenders, that are expected to outperform the sector over the next 12 months, as "Top Buys".

CNBC Pro subscribers can read more here.

— Ganesh Rao

CNBC Pro: This chip stock has a ‘50% margin’ which competitors could ‘struggle to catch up with’, analyst says

Portfolio manager Kamil Dimmich of North of South Capital says the word on the ground is that stocks in technology firm Nvidia are cheap – even as he may personally not think so.

Shares in Nvidia tripled this year as the company's market valued topped $1 trillion over the optimism surrounding its artificial intelligence-powered applications.

Dimmich, who manages the $1.5 billion Pacific North of South Emerging Market All Cap Equity fund, says he is "always looking for great companies with strong cashflows that are not correctly reflected in the market." His focus is identifying undervalued stocks in emerging markets.

What is his list of 'great value' companies to watch?

CNBC Pro subscribers can read more here.

— Amala Balakrishner

European markets: Here are the opening calls

European markets are expected to open higher Thursday.

The U.K.'s FTSE 100 index is expected to open 32 points higher at 8,365, Germany's DAX up 25 points at 18,510, France's CAC 7 points higher at 8,143 and Italy's FTSE MIB up 59 points at 33,908, according to data from IG.

Earnings are due from Ferrovial, Telefonica, EDP, Enel, Pirelli and Salvatore Ferragamo.

— Holly Ellyatt