European stocks fall to three-week low on oil prices and inflation concerns

European shares slipped to a three-week low on Tuesday as rising oil prices and persistent inflation worries offset relief following the U.S. Treasury Department's announcement of increased liquidity support for long-dated debt. Global bond yields climbed to multi-year highs earlier in the session, rattling investors and triggering selling across riskier assets. After the Treasury statement, Germany's 30-year bond yield fell by at least one basis point, while the 10-year yield was little changed, according to Reuters. Citi senior market analyst Fiona Sinkotta said oil trading above $90 a barrel, combined with growing U.S. borrowing volumes, is keeping financial concerns alive. With the energy-dependent European economy weighed down by strong inflationary pressures, money markets are pricing in a 50-basis-point interest rate hike by the European Central Bank this year. Basic resources stocks rose 3.3 percent, tracking higher metal prices, while healthcare shares added 1.4 percent, limiting broader losses. Danish industrial group FLSmidth jumped 6.3 percent after second-quarter earnings topped analyst expectations. Danish mineral wool producer Rockwool, meanwhile, slid 5 percent after its 2026 revenue guidance, though revised upward, still fell short of forecasts.