European shares led lower by weaker utility stocks
LONDON, June 4 (Reuters) - European shares lost ground on Thursday as a pick-up in bond yields weighed on utility stocks, whose large levels of debt make them particularly sensitive to credit market jitters.
German 10-year Bund yields rose to 2015 highs on Thursday, extending a rise that had begun on Wednesday after Mario Draghi, president of the European Central Bank, said the ECB saw no reason to adjust its monetary policy stance despite recent volatility in the credit market.
The pan-European FTSEurofirst 300 index fell 0.6 percent, while Germany's DAX weakened by 0.5 percent.
Utility stocks were among the worst performers on the FTSEurofirst. Spain's Gas Natural fell 1.7 percent while rival Red Electrica declined by 1.6 percent, with Red Electrica also impacted by a downgrade from UBS.
However, Swiss agrochemicals group Syngenta outperformed to rise 1.8 percent after Reuters reported that German company BASF was considering a bid for Syngenta. (Reporting by Sudip Kar-Gupta; Editing by Alistair Smout)
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