European shares head for first monthly drop in six months as yields rise

European shares were heading for their first monthly decline in six months on Wednesday, driven by rising bond yields, Middle East tensions, and higher energy prices that fueled inflation and interest-rate concerns. The STOXX 600 index rose 0.7% but remained set for a September loss of around 1.5%. Global bond yields at multi-decade highs have pressured equities as investors weigh the impact of elevated oil prices on inflation, complicating central bank efforts to ease monetary policy. Investors awaited key inflation data, including Germany's September figures, after France's inflation came in above expectations and Britain's economy grew faster than estimated. Mining stocks led gains, with Glencore rising 1.4% after receiving approval to operate its Australian coal project until 2045, while media stocks weighed on the broader index. Bond markets showed signs of stabilizing, with the German 10-year Bund yield easing for a second session.