(Reuters) – European stocks fell on Tuesday, as a surge in government bond yields pressured high-growth technology shares, with fresh signs of a slowdown in China’s economy weighing on investor sentiment.

The pan-European index was down 0.4%, falling for a third session as a jump in U.S. Treasury yields signalled that investors were bracing for higher cash rates and the risk of persistent inflation. [US/]

The data showed that profit growth in China’s industrial companies slowed down for the sixth month of August. This was due to an increasing threat from the power crisis, which is threatening output and bottom lines.

However, a rally in futures above $80 per barrel continued to support energy stocks, with the oil & gas index rising 1.1% to fresh highs since February 2020. [O/R]

While rising rates were good for banks, technology stocks suffered the most. They fell almost 2% overnight after Wall Street counterparts crashed. ()

Swiss computer peripherals maker Logitech (NASDAQ:) dropped 6.3% as Morgan Stanley (NYSE:) downgraded the stock to “underweight”.

ASM International (OTC :), a Dutch semiconductor supplier, fell 2.7% despite increasing its third quarter order intake guidance.