European stock market open: Equities retreat as bond yields and fiscal risks weigh

Eurostoxx -0.7%Germany DAX -0.7%France CAC 40 -0.3%UK FTSE 100 -0.3%Spain IBEX -0.2%Italy FTSE MIB -0.7%It's a troubling start to the day for European equities as the selling pressure from yesterday looks to extend further. That as investors continue to grapple with a rather uncomfortable mix of political uncertainty, elevated bond yields, and concerns over the global growth outlook.The French situation remains a major talking point, even if the CAC 40 is holding up slightly better than its regional peers at the open. The weekend unrest in France has only added to the government's fiscal headache, with the France-Germany 10-year yield spread having widened to around 147 basis points this week.As such, that remains one of the bigger risks for European markets right now. And it doesn't necessarily take a full-blown debt crisis to start causing problems.Meanwhile, Wall Street did see a bounce yesterday but it's not exactly all too encouraging as we transition to the new day. US futures are looking more tepid now with S&P 500 futures marginally higher by 0.1% while Nasdaq futures are down 0.2%. If anything, it suggests that underlying concerns surrounding AI valuations and elevated Treasury yields haven't exactly disappeared.Speaking of the bond market, 10-year Treasury yields are holding at around 5.12% in keeping a little higher in the early stages of this week. So, the attention now turns to whether yields can settle down and offer equities some added breathing room. Otherwise, even a more convincing recovery in US tech stocks might not be enough to turn sentiment around. This article was written by Justin Low at investinglive.com.