European stocks muted as bond selloff continues; Reckitt jumps
VGK•European shares little changed as bond selloff weighs
Sept. 1 (Reuters) - European shares were little changed on Tuesday as a renewed bonds selloff weighed on markets, while positive corporate updates limited losses.
The pan-European STOXX 600 .STOXX was up 0.04% at 651.35 points by 0729 GMT. Britain's FTSE 100 .FTSE fell 0.4% as trading resumed after Monday's bank holiday. Germany's DAX .GDAXI slipped 0.2%, while France's CAC 40 .FCHI gained 0.4%.
Energy stocks gain; Reckitt and Air Liquide rise on company news
Energy stocks .SXEP rose 1.4%, as Brent crude LCOc1 traded around $92 a barrel. O/R
Reckitt Benckiser Group RKT.L added 5.2% after a jury favoured the company in its trial over claims the company failed to warn that its products for premature babies could cause a deadly bowel disease.
Shares of Air Liquide AIRP.PA climbed 3.8% after media reports said activist investor Elliott Investment Management has built a stake in the French multinational company.
Bond yields rise as Middle East fighting lifts oil and inflation worries
Global bond yields hit major new highs on Tuesday as renewed fighting in the Middle East lifted oil prices and investors worried about inflation and braced for a slew of interest rate hikes.
Germany's 30-year government bond yield DE30YT=RR rose to a fresh 15-year high, while France's 30-year yield FR30YT=RR climbed anew to touch its highest since 2008. GVD/EUR
A prolonged fighting in the Middle East that has driven up energy prices as well as hawkish remarks from Federal Reserve Chair Kevin Warsh last week has prompted investors to price in interest rate hikes. Traders largely expect the European Central Bank to hike rates in September, LSEG data showed.
Euro zone inflation figures for August, which could offer fresh clues on the interest rate trajectory, are expected later in the day.
