European shares weighed down by tech stocks on rising U.S. rate hike bets

European shares fell on Tuesday, with tech stocks coming under pressure as a rise in two-year U.S. Treasury yields reflected ramped-up bets for a U.S. policy rate hike as soon as March.

The pan-European STOXX 600 index dropped 0.9%, with tech stocks declining 1.5% after U.S. treasuries fell along the curve. Two-year yields, which track short-term rate expectations, crossed 1% for the first time since February 2020.

Oil stocks were the only ones in positive territory, jumping 0.4% as crude prices rose to their highest in more than seven years on worries about possible supply disruptions after Yemen’s Houthi group attacked the United Arab Emirates. [O/R]

Vivendi (PA:VIV) shed 0.3% after saying it was investing in digital communication group Progressif Media through the purchase of an 8.5% stake from ZeWatchers.

French food caterer Sodexo (PA:EXHO) jumped 1.6% after Reuters reported Bain Capital was looking to bid for a stake in its benefits and rewards services unit.