European stocks and government bonds fall as oil price climbs

european stocks dropped monday, and government bonds sold off, as oil prices climbed. the move adds to fears that the global economy is heading into a prolonged stretch of higher inflation. the energy shock is the main driver — crude rose again, putting pressure on central banks that were hoping to ease policy soon. germany's 10-year bund yield rose, and france's also ticked up. the stoxx 600 fell, led by sectors most exposed to energy costs. the selloff in bonds means traders are now pricing in fewer rate cuts from the ecb and bank of england this year. oil has gained roughly 15% over the past month.