Europe's Stock Markets Headed for First Monthly Loss in Six Months

European stock markets are headed for their first monthly decline in six months due to rising bond yields, reducing the appeal of risk assets. The STOXX 600 index was up 0.4% at 640.36 points by 0844 GMT but is down 1.7% for the month.

A surge in global bond yields has prompted major central banks like the Federal Reserve and European Central Bank to raise interest rates or adopt a more hawkish stance this month. The move was sparked by Fed chief Kevin Warsh's more hawkish comments at Jackson Hole in late August, according to Chris Beauchamp, chief market analyst at IG Group.

The Iran-US war has also contributed to higher oil prices, with crude up nearly 14% for the month and on track for its biggest climb since July. However, energy shares shed roughly 1% but were still set to end the month with a 3.7% gain.