STOXX 600 off 0.5
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Oct 23 Reuters European shares fell on Monday, as the IsraelHamas war kept investors on edge at the start of a week packed with key data releases, earnings reports and the European Central Bank39;s ECB policy meeting.

The panEuropean STOXX 600 was down 0.5 by 0813 GMT after declines of over 3 in the previous week.

Washington warned of a significant risk to U.S. interests in the Middle East as Israel bombarded Gaza with air strikes.

Adding to the pressure, U.S. Treasury yields continued to rise ahead of key gross domestic product and inflation data from the country later this week.

The GDP data is likely to show quite a robust third quarter and add to expectations that the Fed will keep rates in restrictive territory for longer, said Laura Cooper, senior macro strategist for iShares EMEA at BlackRock.

Later in the week, investors will also monitor earnings from major U.S. technology firms such as Microsoft and Alphabet, while the ECB39;s interest rate decision on Thursday will also be in focus.

Fears of an escalating conflict in the Middle East, surging bond yields and downbeat earnings have pushed the STOXX 600 to multimonth lows.

European government bond yields are at multiyear highs in line with what we are seeing in the U.S. despite very different growth and inflation dynamics. So we expect the ECB to take on…