European stocks slip on bond yields and inflation fears

European shares dipped as rising bond yields and Middle East tensions fueled inflation concerns. Brent crude topped ninety-five dollars, while banking stocks limited losses.

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The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, September 1, 2026. REUTERS/Staff

European shares fell 0.2% to 645.94 points on Wednesday as rising bond yields and energy inflation fears weighed on markets. The pan-European STOXX 600 touched one-month lows during the session following escalating Middle East conflicts. Investors are weighing higher fiscal burdens across regional economies as central banks signal further policy tightening.

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