European stocks fell on Thursday as concerns over U.S. fiscal health kept Treasury yields elevated, while data showing weak euro zone business activity added to the gloom.

The "sell America" trade hasn't waned among global investors surveyed by JPMorgan even as US stocks have rallied back after April's tariff chaos.

The pan-European STOXX 600 index rose 0.3% by 0721 GMT, on course for its sixth straight week of gains. The UK's blue-chip FTSE 100 rose 0.4% after data showed British retail sales jumped more than expected in April.

On Wall Street, stock futures were little changed as investors continued to monitor elevated U.S. Treasury yields.

European stocks pull back on inflation, credit concerns, and geopolitical risks. Stay updated on market trends, EU-UK agreements, and bond yields.

PMI data for both the euro zone and the UK are due later in the day. Among single stocks, Johnson Matthey soared 33%, on course for its biggest percentage gain on record, after the British chemicals firm agreed to sell its unit to Honeywell International for 1.8 billion pounds ($2.4 billion), including debt.

Some Wall Street strategists are betting European stocks will enjoy their best performance relative to the US in at least two decades as the region’s economic outlook improves.

European stocks pull back on inflation, credit concerns, and geopolitical risks. Stay updated on market trends, EU-UK agreements, and bond yields.