PARIS (Reuters) – European stock markets decline at the opening on Thursday, in a context of risk aversion and concern about the trajectory of rates in the United States.

In Paris, the CAC 40 fell 1.08% to 6,891.05 points around 07:17 GMT. In Frankfurt, the Dax lost 0.26%, compared to 0.68% for the FTSE in London.

The pan-European FTSEurofirst 300 index lost 0.68%, the EuroStoxx 50 0.44% and the Stoxx 600 0.78%.

New York index futures suggest Wall Street opening lower, with the Dow Jones expected to fall 0.14%, compared to a decline of 0.15% for the Standard & Poor’s 500 and 0.10% for the Nasdaq.

Tensions in the Middle East, which show no sign of easing after the bombing of a hospital in Gaza on Tuesday evening, are weighing on risk appetite and pushing investors to favor safe assets, such as gold or the dollar. .

Equities are also under pressure from US long-term yields still rising, at their highest in 16 years as markets reposition themselves for a scenario of restrictive rates for longer.

“Defying geopolitical tensions, yields on 10-year US Treasury bonds have reached new highs for this cycle, but these could well be just stepping stones before an even stronger rise,” underlines ING.

In terms of values, Renault is down 5.24%, bottom of the CAC 40 after the publication of its quarterly figures, the group having mentioned a worsening of the currency effect on its turnover.

Pernod Ricard is at the top of the CAC 40 and one of the rare stocks in the index in the green, up 3.56%, while the group said it expects growth in its annual revenues despite a decline in its turnover in the first quarter of its 2023-2024 financial year.

(Written by Corentin Chappron, edited by Blandine Hénault)

Copyright © 2023 Thomson Reuters