European stock markets opened flat, as investors remained concerned about a global sell-off in bonds.

European stock markets opened in a narrow range, with the STOXX 600 up 0.03%, while Germany's DAX fell 0.41%. Investors are concerned about global bond sell-offs and are watching for tensions in the Middle East.

On September 1, 2026, at 4:00 PM, European stock markets opened in a narrow range amid increasing global bond selling pressure and renewed tensions in the Middle East, leading investors to reduce their demand for risky assets.

The STOXX 600 index opened at 651.28 points, up 0.18 points or 0.03%. The French CAC-40 index opened at 8,348.35 points, up 13.85 points or 0.17%. The German DAX index opened at 26,150.75 points, down 107.36 points or 0.41%.

Although energy stocks rose, it could not offset selling pressure in other sectors as investors remained concerned about rising government borrowing costs and inflationary pressures. Meanwhile, the market is also watching key economic data, particularly the final Eurozone manufacturing Purchasing Managers' Index (PMI) for August, scheduled for release today.

Pressure in bond markets increased after the yield on 10-year Japanese government bonds hit a multi-year high, sending shockwaves through global bond markets. US and European yields also rose as investors demanded higher returns to offset the risk of holding long-term bonds amid concerns that inflation could remain high for an extended period and increased new bond issuances.

Rising bond yields are also putting pressure on interest rate-sensitive stocks, particularly high-dividend-paying technology, real estate, and utilities sectors, as higher financing costs and discount rates reduce the present value of future cash flows and decrease the attractiveness of these stocks to investors.

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