Broad-based losses drag STOXX 600 lower
VGK•European shares fall as oil rises and yields climb
European shares fell in early trading on Tuesday as oil prices surged, weighing on fuel-intensive and economically sensitive sectors while rekindling inflation concerns and pushing bond yields higher.
The pan-European STOXX 600 .STOXX index fell 0.7%, with investors looking ahead to U.S. inflation data later in the day for clues on the interest-rate outlook, alongside Federal Reserve Chair Kevin Warsh's first testimony before Congress.
Results from major Wall Street banks, which will kick off the U.S. earnings season, are also likely to drive price action.
Travel and Leisure .SXTP led sectoral declines in Europe, down more than 2%, while energy .SXEP stood out with a 1.3% gain, as oil climbed to one-month highs.
Most other sectors, including banks, real estate, healthcare, luxury and aerospace and defence, also traded lower. Around 76% of STOXX 600 constituents were in negative territory.
London's FTSE 100 .FTSE fell 0.5%.
