European Stocks Decline Led by FTSE 100 as Government Bond Yields Rise

Key Facts

Major European indices closed lower on November 3, 2026, with the UK FTSE 100 leading the declines with a 1.14% drop. According to investinglive.com, European 10-year benchmark government yields moved higher across the board, acting as a hurdle for equity buyers across the continent.

France posted the largest increase in yields at 5.7 basis points, while UK and Italian yields each rose by 5.1 basis points. In equity markets, the German DAX closed down 0.45% and the French CAC 40 declined 0.34% on November 3, 2026, while Italy's FTSE MIB finished the session nearly unchanged.

The UK markets are awaiting the Bank of England's interest rate decision on November 5, 2026, with forecasts suggesting a rate hike to 4% from the previous 3.75%. The release of the MPC meeting minutes and the Inflation Report on the same day will provide further direction for monetary policy under Governor Andrew Bailey.