European stocks closed firmly lower on Tuesday, tracking a negative session for global equities as longer-term bond yields extended their increase. The Euro STOXX 50 lost 0.9% to 6,473 and the STOXX Europe 600 fell 0.6% to 652. Sovereign yields in Europe's largest economies rose sharply in the session, tracking those in North America as soaring levels of debt issuance by AI giants took the market's forefront. This magnified stretched deficit spending both in the US and the Eurozone, adding to concerns of rate hikes by central banks. ASML sank 5% and Infineon lost more than 7%, erasing gains from the last sessions. Meanwhile, Schneider Electric and Siemens fell 4.5% and 2.3%, while Siemens Energy fell 5.5%, aligned with losses in AI infrastructure.