European stocks close mostly lower as yields rise

European equities closed mostly lower as rising sovereign bond yields weighed on risk sentiment. France’s CAC 40 underperformed, while Spain’s Ibex also fell; only Italy’s FTSE MIB was essentially flat. The move came alongside higher 10-year yields across Europe, reinforcing a cautious tone in regional markets. The U.S. dollar was mostly softer against major currencies, with the Australian, Swiss, and New Zealand dollars among the stronger performers. In the U.S., markets were mixed: the Dow, S&P 500 and Russell 2000 traded lower, while Nasdaq benchmarks held modest gains thanks to relative strength in technology shares. Macro data also helped frame the backdrop, with Canada’s July CPI slightly hotter than expected, the Empire Manufacturing index surging, and the NAHB housing sentiment index improving but still depressed. Overall, the article points to a market regime where higher yields are pressuring European equities and supporting a more defensive, mixed cross-asset tone.