European stocks slide as rising yields and ECB rate call weigh on sentiment

European equities fell as rising crude oil prices pushed bond yields higher and investors waited for the ECB’s rate decision. The STOXX 600 slipped 0.8%, while Germany’s DAX and France’s CAC 40 each dropped more than 1%, reflecting pressure on rate-sensitive sectors and weaker valuation assumptions. Markets expect the ECB to hold rates at 2.25%, but a hawkish message from President Christine Lagarde could keep pressure on European growth assets and delay a recovery in corporate margins. On the company side, strong earnings from Nestlé, Nokia, Dassault Aviation and Thales offered some support, while STMicroelectronics slumped sharply after results. The article also notes that Alphabet’s higher capex outlook lifted sentiment for European tech and semiconductor suppliers tied to AI infrastructure spending.