European markets tumble as U.S. bond yields surge; Stoxx 600 down 1.6%

European stocks were sharply lower on Wednesday as U.S. Treasury yields spiked, with inflation concerns continuing to weigh on global markets

The pan-European Stoxx 600 fell 1.6% by early afternoon, with travel and leisure stocks plunging 3.1% to lead losses as all sectors and major bourses slid into negative territory

The benchmark U.S. 10-year Treasury yield surged back above 1.56% early on Wednesday, briefly notching a three-and-a-half-month high, as investor jitters over the potential for persistent higher inflation endured. The jump in bond yields has caused investors to flee highly valued tech stocks in the U.S., as higher rates make their future profits less attractive

The reversal of Tuesday’s positive sentiment did not apply to Europe alone. U.S. stock futures fell in early premarket trading and shares in Asia-Pacific were mostly lower in Wednesday trade

In terms of individual share price movement in Europe, British grocery giant Tesco climbed 6% after upgrading its outlook following strong first-half results

At the bottom of the European blue chip index  Danish medical device company Ambu tumbled 6.2% after warning that revenue growth and earnings will fall below previous guidance

On the data front, German industrial orders fell more sharply than expected in August as overseas demand weakened. Spanish industrial output rose 1.8% year-on-year in August, well below the 3.5% Reuters consensus forecast

Investors in the region could be keeping an eye on U.S. data on Wednesday for more indications on the country’s economic health with the ADP private payrolls report for September set to be released Wednesday. The closely watched nonfarm payrolls report for September is slated for release on Fridayش