(Bloomberg) -- European stocks fell to the lowest level in more than a month on Monday, dragged down by renewed fears for China’s property sector and sharply higher bond yields across the developed world. 

The Stoxx 600 Index closed 0.6% lower in London. The basic resources sector was among the biggest losers of the day, hurt by a drop in iron ore prices as the possible liquidation of China Evergrande Group, added to stress across the country’s property sector, a major consumer of metals. Travel and leisure also led declines after gambling firm Entain Plc announced a revenue warning. 

The worries over Chinese growth filtered through to European luxury stocks, with LVMH down 20% drop from its April peak. Gucci-owner Kering shed as much as 5% after BofA Global Research cut its rating on the stock and also downgraded and Richemont, noting the Chinese consumer “is going to be the key driver of sector revenues next year.”

The losses come after last week’s performance, which was the worst in a month. After the salvo of central bank interest-rate decisions, equity investors are digesting the message that a pause isn’t a cut. 

Bond yields rose sharply across Europe, with 10-year British, German, French and Italian borrowing costs up between 4.5 and 7 basis points. US Treasury yields likewise rose about 8 basis points. Bond proxy sectors such as utilities and telcos lost ground. 

Read: End of Rate Hikes Brings Scant Relief for Equities: Taking Stock

“With higher rates comes again recession scares and the mounting hawkish anxiety is spreading across markets,” said Florian Ielpo, head of macro research at Lombard Odier Asset Management. 

Among individual stocks, AstraZeneca Plc rose, boosting the wider European healthcare gauge, after Morgan Stanley reiterated it as one of its top picks. Ubisoft rallied after BNP Paribas upped the shares to outperform. Swedish landlord SBB jumped after it agreed to sell a further stake in a portfolio of school buildings to Canada’s Brookfield Asset Management Ltd. 

For more on equity markets:

  • End of Rate Hikes Brings Scant Relief for Equities: Taking Stock
  • M&A Watch Europe: SBB, Aviva, Pendragon, Renk, Norsk Hydro, ING
  • US Stock Futures Rise

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