European shares slip after three-day gain as rise in oil, yields weigh

European shares slipped on Wednesday, following a three-day surge, as a rise in oil prices and a spike in global bond yields dampened market sentiment. The pan-European STOXX 600 index fell 0.4% to 633.98 points by 0823 GMT, with technology and mining stocks driving the decline. Oil prices surged nearly a percent, as traders factored in supply disruptions from a storm set to impact US oil-producing areas and attacks by Iran-backed Houthis against Saudi Arabia, amidst growing supplies of Middle East crude.

Additionally, US and European bond yields ticked upward, while French spreads widened due to concerns over France's fiscal challenges leading up to next year's presidential election. Among individual stocks, British water utility firm Pennon Group plummeted 15.4% after it announced a £550 million ($728.5 million) rights issue and reduced its dividend to address operational issues.