European Stocks Slide Amid U.S. Fiscal Concerns

European stocks took a hit on Thursday, reacting to fiscal health concerns in the U.S. which have kept Treasury yields elevated. Investors are eyeing business activity indicators to assess the effects of U.S. tariffs on the eurozone economy.

The STOXX 600 index was down 0.6%, extending its decline from a recent two-month peak. This downturn followed a significant drop on Wall Street, where the 10-year U.S. Treasury yield surged to its highest in three months amid fears of rising U.S. government debt due to potential tax cuts proposed by President Trump.

Adding to the economic uncertainty, France's private sector experienced its ninth monthly contraction, particularly in services. On the stock front, Johnson Matthey saw a historic jump of 33% after agreeing to sell a unit to Honeywell International, while Freenet AG fell 11% after revealing first-quarter results.

(With inputs from agencies.)