European equities drifted and government bonds softened ahead of a European Central Bank meeting later in the week that could mark the beginning of the end of crisis-era monetary stimulus.
The Stoxx 600 index dropped 0.3 per cent in early trades, just shy of its lifetime high of 475.8 reached in mid August. London’s FTSE 100 fell 0.4 per cent.
The yield on Germany’s 10-year government bond, which moves inversely to its price and acts as a benchmark for eurozone borrowing costs, rose 0.03 percentage points to minus 0.33 per cent, around its highest since mid-July. Italy’s equivalent bond yield rose 0.04 percentage points to 0.73 per cent.