Market Data 
By Sruthi Shankar
(Reuters) -European stocks edged lower on Monday as elevated government bond yields prompted investors to pull out of equities at the end of a year that has been positive for some regional markets.
The pan-European index dropped 0.3% by 0947 GMT, with technology and industrial goods makers leading broad-based declines.
Trading volumes were thin ahead of the New Year holiday on Wednesday. Stock markets in Germany, Italy and Switzerland are shut on Tuesday as well, while those in the UK and France have a half-day trading session.
The 10-year German bund yield traded at its highest since mid-November, tracking a rise in U.S. Treasury yields, as uncertainty around monetary policy next year and prospects of inflationary policies under a Trump presidency weighed on investor sentiment.
The STOXX 600 is still on course for a 5.9% annual rise, with German stocks leading regional gains and French shares lagging.
Still, the European benchmark lags the ‘s 25% surge this year as interest rate cuts from the Federal Reserve and a boom in AI trades boosted Wall Street’s tech behemoths.
“The surging S&P 500 and Nasdaq underscore the market’s tech-fuelled triumph, though last Friday’s sell-off, triggered by climbing Treasury yields, was a sobering reminder of lingering rate concerns,” said Matt Britzman, senior equity researcher at Hargreaves (LON:) Lansdown.
The German dipped 0.3% on its final trading day of the year but looked on course for a 19% annual surge, making it the top performer this year among major European bourses.
On the flip side, 40 was set for an annual drop of 2.5%, driven by concerns about the country’s spiralling fiscal deficit and political turmoil.
Siemens (ETR:) Healthineers dipped 1.2% after Siemens AG (OTC:)’s Chief Financial Officer Ralf Thomas told the Handelsblatt newspaper that the German technology group is reviewing its majority stake in its medical technology unit.
BayWa surged 12% after the Munich-based trader of farming supplies and produce said it had reached a restructuring agreement with its major shareholders and financiers.
