European markets lower as economic concerns persist; U.S. dollar hits two-year high

European markets were lower on Monday amid persisting jitters over the global economy and a surging U.S. dollar.

The pan-European Stoxx 600 index was 0.58% lower at 12:45 p.m. London time, with most sectors in negative territory.

Regional markets closed lower last Friday, as investors reacted to the latest U.S. jobs data that showed nonfarm payrolls were up by 256,000 last month — much more than the 155,000 forecast by economists polled by Dow Jones.

The data subdued sentiment among global markets as it raised concerns that the U.S. Federal Reserve would proceed with caution when it comes to further interest rate cuts.

Investors in the region will continue to keep an eye on euro zone and U.K. government bond yields this week after yields climbed to fresh multi-month highs last week.

Global markets will also be focused on the U.S.’ December consumer price index on Wednesday morning, after the December producer price index report on Tuesday.

U.S. stock futures ticked lower early Monday, while Asia-Pacific markets traded lower overnight.