European shares experienced a subdued finish on Monday, pressured by rising bond yields. The pan-European STOXX 600 index closed down 0.1%, registering at 578.38 points. This decline highlights market caution as investors anticipate the U.S. Federal Reserve's upcoming monetary policy meeting.

The real estate sector was the primary drag on the STOXX index, plummeting 1.6% due to a global increase in long-term government bond yields. Meanwhile, consumer staples saw declines, with Unilever dropping 2% post-demerger announcement. Industrials defied the trend, with defence firms driving gains in the sector.

Market analysts predict a rate cut from the Federal Reserve, expected to lower interest rates by 25 basis points. This comes amid ongoing geopolitical tensions involving Ukraine, and inves

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