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European shares extended losses on Tuesday as elevated bond yields pressured the rate-sensitive technology sector, while weakness in China-exposed stocks persisted on slowdown jitters in the world's second-largest economy.
The pan-European STOXX 600 shed 0.5% by 0814 GMT, as the benchmark 10-year Bund yields edged lower but hovered near their highest level since 2011.
Technology stocks, whose valuations come under pressure as yields rise, slid 1.1%, while rate-sensitive real estate stocks eased 1.0%.
Energy stocks shed 1.2% as crude prices fell on concerns that fuel demand will be crimped by major central banks holding interest rates higher for longer.
China-exposed luxury stocks such as LVMH and Richemont weakened 1.5% and 2.2%, respectively, amid lingering concerns over the crisis-hit Chinese property sector.
British online fashion retailer ASOS eased 0.5% after it reported a 15% fall in fourth-quarter sales and forecast earnings around the bottom of its guided range.
"The fast fashion e-commerce industry is notoriously difficult, particularly amid growing competition from brands like Shein in China which offer rock bottom prices and a constant churn of stock which provide customers with the very latest trends," said Victoria Scholar, head of investment at Interactive Investor.
"ASOS has also struggled with the return to physical stores post Covid as well as cost inflation from wages to energy."
Carmat's shares slumped 36.4% after the French artificial heart maker said on Monday it would miss its full-year sales target amid supply issues and warned it could run out of cash by the end of October
Shares of Rio Tinto slipped 0.4% after its majority-owned uranium unit, Energy Resources of Australia , earlier in the day forecast a material cost overrun and delays related to the rehabilitation of its Ranger mine in the Northern Territory. (Reporting by Bansari Mayur Kamdar in Bengaluru; Editing by Sherry Jacob-Phillips and Sohini Goswami)