European stocks edged lower as a global bond selloff weighed on sentiment, with the Stoxx Europe 600 Index declining 0.1% in London. Yields on 10-year Treasuries steadied around 5.1% after surging following tariff announcements. Brent crude extended gains to $103 per barrel amid tensions involving Iran and the Strait of Hormuz.

In individual stocks, Hennes & Mauritz AB dropped 3.7% as tariff refunds masked a profit margin decline. Simon Wiersma of ING noted higher borrowing costs are becoming a meaningful challenge, likely capping valuation expansion. While banks may benefit from the rise in yields, Joachim Klement of Panmure Liberum suggested the overall market is more sensitive to borrowing costs than the US, favoring the defensive UK sector.

Hiab Oyj fell 5.2% after being cut to hold from buy at SEB due to concerns over lower-than-expected orders for newly acquired Labrie.