European stocks fall to 4-week low as US bond yields climb

European stocks fell on Tuesday, and hit a 4-week low due to investors' risk aversion and widescale sell-off, after the 10-year US Treasury bond yield jumped to new highs.

The Stoxx Europe 600 index fell 1.25% as of 11:25 GMT, and hit the lowest level since December 22 at 477.52 points, after it closed higher by 0.7% yesterday, following upbeat Chinese growth data.

The tech sector is today's biggest loser in Europe, with a drop of more than 2.5%, followed by the travel and entertainment sector, with a drop of 2.25%.

US 10-year treasury yields rose 2.1%, the third such gain in a row, marking a 2-year high at 1.856% while analysts expect it to reach 2% soon.

These developments in the bonds market came due to growing chances that the Federal Reserve will raise interest rates next March, in the first of three expected rate hikes this year, with the possibility of a fourth hike if inflation continues to rise.

S&P 500 futures fell 1.1% today ahead of Wall Street's opening, after a public holiday in the US yesterday.

Back to Europe, the Euro Stoxx 50 index fell 1.1%, France's CAC 40 fell 1.2%, Germany's DAX index fell 1.3%, and the UK's FTSE 100 fell 0.9%.