European stocks back off month high as US bonds rise

European stocks fell on Monday, on track for the first daily loss in 4 days, while pulling back from month highs, due to profit-taking, and investors' risk aversion due to rising US Treasury bond yields.

The Stoxx Europe 600 index fell more than 0.5% as of 11:10 GMT, after it closed higher by 0.75% on Friday, and hit the highest since September 17 at 469.52 points.

The pan European index gained 2.6% last week, the second straight weekly gain, thanks to upbeat Q3 earnings results.

The retail sector saw the largest loss in Europe today, with a drop of over 1.7%, as most of the sector's shares fell.

The 10-year US Treasury bond rose today by 3%, towards four-month highs, which dampens investors' risk appetite.

The Federal Reserve is expected to start trimming its bonds purchases program next month, with markets pricing a US rate hike in September 2022.

S&P 500 futures fell 0.4% today ahead of Wall Street's opening, after the index closed higher by 0.75% on Friday and posted a 1-month high.

Back to Europe, the Euro Stoxx 50 index fell 0.7%, France's CAC 40 fell 0.8%, Germany's DAX index fell 0.6%, and the UK's FTSE 100 fell more than 0.3%.