European shares open lower as energy stocks, higher yields weigh

Credit: REUTERS/Kai Pfaffenbach

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Jan 8 (Reuters) - European shares opened lower on Monday, extending their lacklustre start to the year, as higher government bond yields and tepid energy stocks weighed on risk appetite.

The pan-European STOXX 600 .STOXX was 0.1% down by 0815 GMT.

The yields on the European 10-year benchmark note EU10YT=RR and the German 10-year DE10YT=RR tracked their U.S. peers higher and were up for a third consecutive session.

Fading expectations of an early U.S. rate cut kept the dollar and bond yields supported, ahead of consumer price inflation report on Thursday.

European oil and gas .SXEP stocks dropped 1.4% to weigh the most on the STOXX 600 index, as crude prices dipped following sharp price cuts by top exporter Saudi Arabia and a rise in OPEC output. O/R

On the data front, German industrial orders rose less than expected, while exports rose more than forecast in November.

Investor focus will also shift to euro zone retail sales data for November due at 1000 GMT.

In corporate news, shares of PandoraPNDORA.CO added 2.5% as the Danish jewellery maker exceeded quarterly sales expectations.

(Reporting by Khushi Singh and Shristi Achar A in Bengaluru; Editing by Sherry Jacob-Phillips)

((Khushi.Singh@thomsonreuters.com; Shristi.AcharA@thomsonreuters.com https://twitter.com/ShristiAchar;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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