Europe shares slip as banks drag, oil-driven inflation fears weigh

European stocks slipped (STOXX 600 down ~0.4%) with banks leading losses, denting market sentiment.
Escalating Middle East tensions pushed oil higher, stoking inflation worries and sending the U.S. 10‑year Treasury yield to 5% — a notable market milestone.
Traders are pricing in a likely Fed rate hike this week, while the ECB has already tightened policy, underscoring a global shift toward higher rates.