European stocks suffered a sharp sell-off at the open on Monday, tracking big drops in Asia as growing inflation expectations and rising bond yields took their toll on equity markets.

Europe’s STOXX 600 sank 1.1 per cent, in line with euro zone stocks and on track for its sixth straight day of decline. The pan-European index hit a two-month low in early dealing, having given back all the gains it made in the exuberant new year rally.

Among major European equity markets, only Spain and Italy are still higher than at the turn of the year, with the UK the worst performer. All sectors were in the red on Monday, but the sell-off hit the highest valued parts of the market hardest, with tech stocks falling 1.6 per cent.

Chipmaker AMS , one of the best-performing European stocks last year, fell 4.5 per cent. Siltronic tumbled 3.7 per cent, while BE Semiconductor fell 3 per cent.

Results also weighed on some stocks. Ryanair fell 3.5 per cent after the airline struck a cautious tone about fares and potential disruption from pilot unions, though it reported rising profits.

Travel and leisure stocks were among the worst-performing, down 1.3 per cent as shares in airlines Air France, easyJet, IAG and Lufthansa fell.

Fiat Chrysler fell 2.7 per cent after sources told Reuters late on Friday that the US Justice Department was seeking “substantial” fines in the emissions case against the Italian carmaker. A downgrade to “sell” from DNB drove Hexpol shares down 5 per cent, the worst-performing company on the STOXX index.

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