European stocks muted as bond selloff continues; Reckitt jumps

European stocks remained relatively unchanged on Tuesday as renewed bonds selloff impacted markets, with positive corporate updates offsetting some of the losses. The pan-European STOXX 600 index ended the day at 651.35 points, up 0.04%. However, Britain's FTSE 100 fell 0.4%, while Germany's DAX dropped 0.2% after trading resumed following Monday's bank holiday. France's CAC 40 index gained 0.4%.

Global bond yields reached record highs on Tuesday, driven by escalating conflicts in the Middle East which boosted oil prices and heightened concerns over inflation and a potential wave of interest rate hikes. Germany's 30-year government bond yield surged to a 15-year peak, while France's 30-year yield climbed to its highest level since 2008. These developments have led investors to anticipate interest rate increases, with many expecting the European Central Bank to raise rates in September, according to LSEG data.

Inflation data for August, which could provide insights into the direction of interest rates, is due to be released later on Tuesday. Energy stocks gained 1.4% as Brent crude oil traded around $92 a barrel. Shares of Reckitt Benckiser Group surged 5.2% after a jury ruled in favor of the company in a trial regarding claims that its products for premature babies could cause a fatal bowel disease.

Additionally, Air Liquide's shares rose 3.8% following reports that activist investor Elliott Investment Management had acquired a stake in the French multinational company.