European Stocks Close Mixed Amid Elevated Bond Yields and Energy Prices

European stocks closed mixed on Tuesday as investors weighed in on rising bond yields and energy prices. The pan-European STOXX 600 slipped 0.09% to 638.08 points, giving up earlier gains. Germany's DAX rose 0.1% to 25,399.21, while Italy's FTSE MIB gained 0.09% to 51,804.94.

London's FTSE 100 fell 0.45% to 10,636.71, France's CAC 40 declined 0.53% to 8,035.87, and Spain's IBEX 35 lost 0.42% to 19,517.50. The euro fell 0.38% to $1.1328, its lowest since June 24.

The elevated bond yields made equities less attractive and raised borrowing costs for companies. Oil prices remained above $100 a barrel, keeping inflation risks in focus. The European Central Bank's inflation outlook also remains part of the backdrop, with a forecast of euro area inflation at 3% for 2026 and 2.5% for 2027, both above its 2% target.