European stocks start quarter lower as global yields hit multi-year highs

Oct 1 (Reuters) - European ‌shares started ​the ​final quarter of the year on a downbeat note on ‌Thursday as investors turned risk-averse with global ⁠bond yields hovering at multi-year highs.

The pan-European STOXX ‌600 was down 1% ‌at 628.1 points by 0720 GMT, falling to its lowest level since mid-September.

Most ​European sub-sectors declined, with banks leading the losses.

Global yields surged in September ⁠as investors sold government debt, while soaring energy costs fuelled ​inflation concerns and the AI boom strengthened growth expectations, reinforcing expectations that ​interest rates could remain ‌higher for longer.

The U.S. 10-Treasury yield jumped to a multi-decade peak ⁠of 5.3168%. [US/]

Oil prices, however, fell below the key $100-per-barrel level as recovering crude exports from ⁠the Gulf and a surprise rise in US inventories ​eased crude supply concerns. [O/R]

Focus later in the day will be on euro zone unemployment data, which ‌could provide further insight into the strength of the economy.

Among individual ‌stocks, UK's Gamma fell roughly 3% ⁠after Dutch private equity ‌firm Waterland ​dropped its takeover offer.

(Reporting by Sudeshna Ghoshal in Bengaluru; Editing by Sherry ‌Jacob-Phillips)

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