Europe's Shares Headed for First Monthly Decline in Six Months

European shares are on track for their first monthly loss in six months due to rising bond yields. The surge in global bond yields has reduced the appeal of risk assets, making investors cautious.

The pan-European STOXX 600 was up 0.4% at 640.36 points by 0844 GMT. However, it is down 1.7% for the month and nearly flat for the third quarter.

Central banks such as the Federal Reserve and the European Central Bank have raised interest rates or adopted a more hawkish stance this month due to factors like an energy-price shock from the Iran war, deteriorating government finances, and a glut of issuances.