0934 GMT - European stocks' resilience could be broken by rising government bond yields on the continent, Goldman Sachs analysts write. Each 10 basis-point rise in 10-year German Bund yields translates to a 1% to 1.2% fall in the Stoxx 600, the analysts say. Widening spreads also hurt equity performance--for each 10 basis points widening in the average spread between French OATs and Bunds, European stocks' price-to-earnings ratio falls by 0.9%, they add. "The rise in bond yields is becoming increasingly difficult to digest." The near-term prospects for European earnings remain strong, however, while European technology, energy and financial stocks all have structural tailwinds, they say. The Europe-wide Stoxx 600 rises 0.3%, and remains around 4.5% from its peak.
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