European Stocks Set for First Monthly Loss in Six as Bond Yields Surge

European shares headed toward their first monthly decline in six on September 30, 2026, as a surge in global bond yields reduced the appeal of risk assets. The pan-European STOXX 600 rose 0.4% to 640.36 points by 0844 GMT but remained down 1.7% for September and roughly flat for the third quarter. An energy-price shock from the Iran war, deteriorating government finances and a glut of issuance prompted major central banks, including the Federal Reserve and European Central Bank, to raise rates or adopt a hawkish stance this month. Oil gained nearly 14% in September, set for its biggest climb since July, as US-Iran peace talks stalled. The 10-year German bund yield hovered near its 2009 high. Britain's second-quarter growth beat expectations, while French September inflation came in above forecasts. Greggs gained 6.3% after raising its annual profit outlook.