European shares set for first monthly loss in six as bond yields weigh

European shares were on course for their first monthly fall in six months on Wednesday, according to Business Recorder, as inflation concerns linked to the Middle East war hit bond markets worldwide and pushed borrowing costs higher. By 0722 GMT, the STOXX 600 had risen 0.7% to 642.69 points on the day.

The index is heading for a 1.5% drop this month, while the third quarter is set to finish roughly flat. Global bond yields have jumped to multi-decade highs in recent weeks, adding strain to equities as investors prepare for rate rises aimed at containing energy-driven inflation.

Oil prices edged higher after Donald Trump dismissed the idea of relaxing Iran sanctions, while Qatar pushed for peace talks. Elsewhere, the 10-year German bund yield fell for a second straight day, Britain's second-quarter growth was revised up, and France's September inflation came in above forecasts. Mining shares led the gains, with Glencore up 1.4% after winning approval to keep its Hunter Valley thermal coal project in Australia running until 2045.