Mining and technology sectors keep European stocks under pressure

European stocks fell on early deals on Monday, weighed down by miners as investors worried about a sharp economic slowdown in China due to prolonged Covid-19 restrictions, while rising US bond yields kept tech stocks under pressure.

The pan-European STOXX 600 index slipped 0.1 percent by 0711 GMT, hovering near the lowest since Friday’s mid-March high.

Miners fell 1.6 percent, leading sectoral losses in morning trade as Chinese iron ore futures fell more than 6 percent on demand concerns in the world’s second-largest economy.

Tech stocks fell 1 percent as US bond yields surged to new highs on bets that the Federal Reserve would hike rates more quickly to combat a spike in inflation.

Chipmaker Infineon slipped 2.2 percent despite raising its full-year outlook as it benefits from a global semiconductor shortage.

Dutch postal company PostNL slumped 12.1 percent after cutting its full-year guidance and reporting a 75 percent fall in core profit, warning that economic uncertainty, rising inflation and pressure on e-commerce volumes will make 2022 “more challenging than previously expected”.