European stock markets ended the day with a decline of more than 1% due to the surge in U.S. Treasury yields, which reached a 16-year high.

This drop came as investors grappled with concerning economic data from the European region.

The Stoxx 600, a prominent regional index, closed down by 1.1%. All sectors and major stock exchanges were in negative territory. The utilities sector, burdened by heavy debt, experienced a significant decrease of 2.7%, with particular attention on the impact of higher long-term interest rates. Meanwhile, mining stocks also saw a decline of 2.6%.

Despite the change in calendar months, European stocks were unable to shake off the gloomy sentiment that had persisted since August and September. This negative trend continued from the previous day when data revealed a downturn in manufacturing output, characterized by a near-record decrease in new orders.

Across the Asia-Pacific region, Hong Kong's stock market experienced a notable decline of approximately 3%, contributing to broader losses in the region. Hong Kong's Hang Seng index traded 3.12% lower after returning from a National Day holiday observed on Monday.

In the United States, the stock market also witnessed a decline as traders closely monitored the surge in Treasury yields. The 10-year Treasury yield, a crucial benchmark for mortgage rates and an indicator of investors' confidence in the economy, briefly reached its highest level since 2007.