10year Treasury yield at 2008 highs
Utilities index hits 10month low
Boohoo slides on sales warning

Oct 3 Reuters European shares were nearly flat on Tuesday, with gains in banks and insurers offsetting losses in ratesensitive utilities as bets that U.S. interest rates would remain higher for longer boosted Treasury yields and the dollar.

Strong economic data on Monday and the passage of a U.S. funding bill to avert a federal government shutdown boosted the dollar to 11month highs and the 10year Treasury yield to a fresh multiyear peak.

The panEuropean STOXX 600 index edged up 0.2, but hovered near a sixmonth low touched in the previous session.

The fight against inflation has raised the cost of capital to levels that have triggered open cracks in the global economy, said Peter Garnry, head of equity strategy at Saxo Bank.

Europe39;s utilities index dropped 0.7 to a 10month low, pressured by the prospect of higher rates.

Shares of offshore wind developer Orsted fell 3.2 to a more than fiveyear low, while Vestas Wind Systems slid 3.0.

Higher interest rates and commodity prices have drastically altered the assumptions behind offshore wind power… many projects in the global pipeline were negotiated on assumptions of permanently low interest rates and cheap industrial metals, Saxo39;s Garnry added.

Miners fell 0.5 as metal prices slid against a stronger dollar, although banks and insurers that tend to benefit from higher interest rates, rose about 0.5, each….