European stock markets are expected to open marginally lower Wednesday, handing back some of the recent gains with higher U.S. Treasury yields weighing on the tech sector.

At 2:05 AM ET (0705 GMT), the DAX futures contract in Germany traded 0.1% lower, CAC 40 futures in France dropped 0.1% and the FTSE 100 futures contract in the U.K. fell 0.2%.

European indexes had started the new year on the front foot, with the pan-European STOXX 600 index climbing to an all-time high amid optimism about the global economic recovery.

However, Europe is expected to follow the broadly negative tone in Asia overnight with investors fretting about rising U.S. Treasury yields and the impact this will have on the highly leveraged tech sector, the source of most of the gains on Wall Street over the last few years.

Benchmark U.S. 10-year Treasury yields touched a six-week high on Tuesday, five-year rates hit a pandemic-era high, and two-year note yields hit their highest since March 2020 on Monday.

This comes as much of Europe struggles to contain the latest wave of Covid-19 cases.

Data releases in Europe on Wednesday center around final PMI data for the Eurozone’s services and manufacturing industries in December, which may provide early signals of the problems Omicron has caused.

Additionally, investors looking for clues as to when the Federal Reserve announces its first interest-rate hike will study the minutes of the central bank’s meeting last month closely when they are released later in the session.

Oil prices stabilized Wednesday as traders digested rising U.S. crude stockpiles at the same time as a group of top producers gradually lifted global output.

The FTSE MIB climbed up  by 0.19% to 27,845.20. In the cash markets, the DAX  Germany was trading  down by 0.08%  to 16,125.65. CAC 40  in France  fell by 0.10% to 7,306.37 while the FTSE 100  in the U.K. was  down by 0.13% to 7,425.35 ,at the time of writing.