Europe close: Stocks decline as oil rebounds, bond yields rise

23rd Sep 2026 16:01

(Sharecast News) - European stocks declined on Wednesday, erasing early-morning gains, as a surge in bond yields worldwide saw investors scale back equity positions while oil prices rose for the first time in six days.

The benchmark Stoxx 600 index finished 0.4% lower at 639.92, with most major indices across the region registering moderate losses.

Brent crude was 2.4% higher at $101.67 a barrel, rebounding after dropping around 9% over the previous five days, amid easing supply disruption fears and hopes of diplomacy at the UN General Assembly.

US bond yields in particular surged to their highest since 2007, up 10.7 basis points at 5.077%, after Federal Reserve governor Michael Barr said further rate hikes would be necessary "to ensure inflation comes down to target in a timely fashion". The Treasury Department was also expected to report details of its next bond repurchase programme later on Wednesday.

Government bonds were also sold off across Europe, with bond yields up by nine basis points or more across Germany, France, Italy and Spain after economic data came in stronger than expected.

The flash reading of the S&P Global eurozone composite PMI increased to 53.1 in September, up from 52.0 in August. This was ahead of the 51.7 consensus forecast and the highest reading in 41 months.

In equity news, shares in Dutch engineering company Arcadis fell after Canada's WSP walked away from an attempted €4.4bn takeover.

Airtel Africa fell in London after formally announcing plans to list its Airtel Money division, reportedly targeting a valuation of $8bn-9bn.

Also in London, drinks group Diageo was in the red after announcing that it is replacing its CFO Nik Jhangiani after a two-year stint at the company. He will be succeeded by WPP CFO Joane Wilson.

German seed producer KWS fell sharply after missing analysts' forecasts with its annual results, with sales weighed down by lower sugarbeet and corn acreage.