European stocks may record their first monthly decline in six months as elevated bond yields suppress risk assets.

⑴ European stock markets are likely to record their first monthly decline in six months on Wednesday, as soaring global bond yields have diminished the appeal of risk assets. ⑵ The pan-European STOXX 600 index rose 0.4% to 640.36 points, down 1.7% this month and nearly flat in the third quarter. ⑶ The energy price shock triggered by the Iran war, deteriorating government finances, and heavy issuance have prompted major central banks, including the Federal Reserve and European Central Bank, to raise interest rates or adopt more hawkish stances this month. ⑷ According to institutional analysts, the Jackson Hole meeting at the end of August got off to a poor start, with Federal Reserve Chair Kevin Walsh being more hawkish than expected, setting the tone for rate hikes throughout the month. ⑸ Oil prices have risen nearly 14% this month, on track for their biggest monthly gain since July, due to stalled talks aimed at ending the US-Iran war. ⑹ Energy stocks fell by about 1%, but are set to close the month up 3.7%. ⑺ The eurozone's benchmark 10-year German government bond yield declined for a second consecutive day but hovered near 2009 highs. ⑻ The aforementioned analysts added that the trend of bond yields and whether the recent surge can be sustained remain key focuses for investors. ⑼ The UK's second-quarter economic growth was revised up, France's September inflation reading was higher than expected, and market attention has shifted to Germany's preliminary September inflation data to be released later in the day. ⑽ In individual stocks, Nordnet rose 2.5% as JPMorgan resumed coverage of the stock with an overweight rating, and the UK's largest fast-food chain Greggs rose 6.3% as the company raised its annual profit outlook. ⑾ Overall, market sentiment is restrained by both bond yields and energy prices, with upcoming focal points on German inflation data and central bank policy paths.