A slump in German shares pushed European stocks lower for the first time in four days amid a selloff in euro-area government bonds.

The Stoxx Europe 600 Index dropped 1.3 percent to 396.09 at the close of trading, having earlier lost as much as 2.1 percent. All 19 industry groups declined. Yields surged on 10-year notes in Germany, Italy and Spain, while the euro strengthened.

The Stoxx 600 has retreated 4.3 percent after a 21 percent surge this year through a record in April amid quantitative-easing measures by the European Central Bank.

High expectations for the ECB’s bond-buying program pushed global bond valuations to extreme levels, triggering a “large and vicious” selloff in European debt, Goldman Sachs Group Inc. wrote in a note.

All but two of 18 western-European markets fell. Germany’s DAX Index led declines, tumbling 1.7 percent. The U.K.’s FTSE 100 Index, France’s CAC 40 Index and Spain’s IBEX 35 Index slipped more than 1 percent.

Source: Bloomberg