European markets close lower as German benchmark yield hits 12-year high

European stock markets fell on Monday, marking a third straight session of losses with focus on the potential for higher for longer rates.

The Stoxx 600 index dropped 0.6%, with Germany’s DAX down 1%, France’s CAC 40 down 0.9% and the U.K.’s FTSE 100 0.8% lower.

U.S. stocks opened lower Monday.

The Dow Jones Industrial Average dipped 68 points, or 0.2%. The S&P 500 slipped 0.3%, while the Nasdaq Composite dropped 0.5%.

— Sarah Min

François Villeroy de Galhau, governor of the Bank of France and ECB member, discusses his current perspectives on the European Central Bank’s monetary policy.

Germany’s 10-year bond yield hit its highest point since 2011, according to Reuters, as euro zone yields more widely also increased.

Investors are looking ahead to inflation data set for release this week, which will influence the European Central Bank’s next move.

Germany’s 10-year bond yield was last up 4 basis points, at 2.78% after hitting its highest level since July 2011 at 2.783%. The move is likely linked to German economic data continuing to paint a bleak picture.

German business sentiment dropped for a fifth consecutive month according to Ifo data, with the institute saying the outlook for the months ahead in construction was “extremely pessimistic.”

The wider mood in the German economy “remains bad,” the Ifo said, as translated by CNBC.

— Hannah Ward-Glenton

European markets opened lower, with all sectors in the red.

The pan-European Stoxx 600 index was down 0.3% in early trade, with all sectors in negative territory. Mining stocks led losses with a 1.9% drop, followed by travel and leisure, which fell 1.4%.

— Hannah Ward-Glenton

Goldman Sachs has forecast “healthy” growth in new lending at three major Indian banks over the next six months, which could lead to a significant upside for those stocks.

The Wall Street bank said Indian bank stocks have underperformed over the past three to six months despite a positive outlook for lending growth in the sector.

It named three lenders, that are expected to outperform the sector over the next 12 months, as “Top Buys”.

CNBC Pro subscribers can read more here.

— Ganesh Rao

Portfolio manager Kamil Dimmich of North of South Capital says the word on the ground is that stocks in technology firm Nvidia are cheap – even as he may personally not think so.

Shares in Nvidia tripled this year as the company’s market valued topped $1 trillion over the optimism surrounding its artificial intelligence-powered applications.

Dimmich, who manages the $1.5 billion Pacific North of South Emerging Market All Cap Equity fund, says he is “always looking for great companies with strong cashflows that are not correctly reflected in the market.” His focus is identifying undervalued stocks in emerging markets.

What is his list of ‘great value’ companies to watch?

CNBC Pro subscribers can read more here.

— Amala Balakrishner

European markets are expected to open in negative territory Monday.

The U.K.’s FTSE 100 index is expected to open 25 points lower at 7,666, Germany’s DAX down 36 points at 15,526, France’s CAC down 29 points at 7,161 and Italy’s FTSE MIB down 74 points at 28,521, according to data from IG.

Data releases include Germany’s closely watched Ifo Institute survey of business conditions for September.

— Holly Ellyatt