European Shares Slide as Oil Prices Soar and Bond Yields Climb

The European Stoxx 600 index closed 0.5% lower on Wednesday, marking its first monthly loss in six months. The decline was attributed to rising global bond yields, which reduced the appeal of riskier assets.

Oil prices surged nearly 14% for the month, driven by stalled US-Iran talks aimed at ending their war. Energy shares shed 0.9% despite ending the month with a 2.7% gain, the most among peers.

The 10-year German bund yield hovered around its 2009 high, while data showed US inflation increased less than expected in August, prompting markets to ease bets on US interest rate hikes next month.