Europe close: Stocks fall amid bond market sell-off, oil rebound

24th Sep 2026 16:10

(Sharecast News) - European stocks finished a choppy day firmly in the red as a bond market sell-off and an ongoing rebound in oil prices dampened risk appetite, while investors digested three key central bank meetings.

The pan-European Stoxx 600 benchmark settled 0.6% lower at 636.43, with bond yields across the region rising strongly. The 10-year German Bund yield in particular hit 3.579%, its highest since 2009.

It was a busy day for central bank meetings. Policymakers in both Sweden and Switzerland held on to interest rates, as widely expected, though the Riksbank warned of possible rises to come.

Meanwhile, Norway's Norges Bank lifted rates for the second time this year and said it would be prepared to hike again to contain inflation. It raised its key deposit rate by 25 basis points to 4.5%. Economists had been split in their forecasts, with some expecting the central bank to stand pat.

Brent crude was up 4.2% at $102.20 a barrel, rising for the second day. Oil had dipped below the $100 mark for the first time in two weeks on Tuesday after a five-day losing streak amid hopes of talks between the US and Iran on lifting the blockade on the Strait of Hormuz.

Iranian President Masoud Pezeshkian's speech to the United Nations on Wednesday put paid to any hopes of immediate talks as he blamed the US and Israel for stoking global instability, effectively hitting back at US President Donald Trump's assertion that he was weighing whether to "annihilate" Iran.

Sentiment was also hit by a warning from the European Bank for Reconstruction and Development that growth was slowing across a range of emerging market nations. The EBRD, which covers 41 nations, expects growth of 2.5% this year, 0.6 percentage points below its June forecast.

In equity news, H&M shares fell after the fashion house posted results. The Swedish-owner of H&M, Cos and Arket, among others, saw net sales rise just 1% in local currencies in the three months to 31 August to SEK57.2bn, but operating profits soared to SEK6bn from SEK4.9bn a year previously, comfortably ahead of forecasts.

Troubled UK housebuilder Vistry posted a massive £661m loss in the first half of the year and cut full-year guidance.

Energy stocks bounced back after recent losses, with Eni, BP, Shell and Repsol rising strongly.