European stocks drop as oil prices and bond yields rise, ending three-day rally

On Wednesday, October 7, European stocks fell, ending a three-day rally, as higher oil prices and rising bond yields weighed on sentiment. The Stoxx 600 index dropped 0.3%, with banks leading declines. Oil prices rose nearly 1% due to Middle East tensions and a US storm threat. Bond yields in Europe and the US edged higher, with French spreads widening on fiscal concerns. The euro slipped to $1.1188. Investors awaited Fed minutes and Treasury auctions for rate clues. Autos rose 0.9% on reports the EU may limit Chinese hybrid imports.