Novo Nordisk up on UBS upgrade
Shell down on weaker Q4 LNG warning
STOXX 600 down 0.2

Jan 8 Reuters European shares dipped on Wednesday, as bond yields surged after investors priced in fewer interest rate cuts in Europe and the U.S. this year, while concerns about new tariffs under Donald Trump39;s presidency also weighed on sentiment.

The panEuropean STOXX 600 closed down 0.2, with most regional bourses also in the red.

Yields across European government bonds shot up, with the those on the German benchmark 10year notes hitting their highest level in more than five months, mirroring a rise in U.S. Treasury yields.

British government bonds took a bigger beating, sending the 30year yields to a new 26year high in a move that will add pressure to government finances.

The UK39;s midcap index tumbled 2, while France CAC 40 led declines in euro zone markets with a 0.5 drop.

Data on Tuesday showed euro zone inflation accelerated in December, prompting traders to scale back expectations of rate cuts from the European Central Bank later this year, although they stuck to bets of a 25 bps rate cut in January and March.

Another set of data on Wednesday showed German industrial orders and retail sales unexpectedly fell in November, while euro zone economic sentiment contracted in December.

Meanwhile, Trump was considering declaring a national economic emergency to provide legal justification for a series of universal tariffs on allies and adversaries, CNN reported, citing…