Forex

Euro Stocks Plummet Amid Rising Bond Yields and Iran Conflict

Guavy AI Editorial Team Published September 30, 2026

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European stocks are on track to post their first monthly loss in six months due to rising bond yields. The STOXX 600 index, which tracks pan-European shares, was up by 0.4% at 640.36 points as of 0844 GMT.

This represents a decline of 1.7% for the month and nearly flat performance for the third quarter. The recent surge in global bond yields has reduced the appeal of risk assets, making investors more cautious about their investments.

The energy sector, which had seen a significant price shock due to the Iran war, is also experiencing a downturn with shares shedding roughly 1%. However, oil prices are up by nearly 14% for the month and set for the biggest climb since July, as US-Iran talks aimed at ending their conflict have stalled.

Chris Beauchamp, chief market analyst at IG Group, attributed the current market sentiment to the hawkish tone set by Federal Reserve Chief Kevin Warsh at Jackson Hole in late August. He noted that this event 'set the tone for the entire month.'

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