PARIS (Reuters) – The main European stock markets are trending downward on Friday morning, still affected by geopolitical risk, while the high level of bond yields weighs on stocks, not to mention some publications considered disappointing like that of L’Oréal .

In Paris, the CAC 40 lost 1.09% to 6,846.23 points around 07:50 GMT. In London, the FTSE 100 fell by 0.51% and in Frankfurt, the Dax fell by 1.06%.

The EuroStoxx 50 index fell by 1% and the FTSEurofirst 300 by 0.92%. The Stoxx 600, which hit a two-week low on Thursday, fell further by 0.84%.

Over the week as a whole, the pan-European index lost 2.93% at this stage and the CAC 40 lost 2.22%.

Futures contracts on Wall Street predict a drop of 0.18% for the Dow Jones, 0.23% for the Standard & Poor’s 500 and 0.39% for the Nasdaq the day after a markedly red session. by the fall of Tesla following its results and a warning about the impact of inflation on the sales of its cars.

The intervention Thursday by Jerome Powell, the president of the American Federal Reserve (Fed), before the Economic Club of New York, also reinforced fears of prolonged monetary tightening. He warned that the strength of the economy could require further rate hikes, two weeks before the meeting of the American central bank scheduled for October 31.

Over the week as a whole, the yield on ten-year Treasury bills rose 35 basis points, its largest weekly increase in more than ten years.

Added to concerns about rates is the fear of an imminent ground offensive by Israel against Palestinian Hamas, with the risk of a conflagration in the region, given the latest statements by Israeli Defense Minister Yoav Gallant.

On the stock market, the luxury sector fell by 0.98% while L’Oréal reported Thursday evening organic growth in its turnover in the third quarter below expectations, due in particular to a decline in sales in Asia.

In its wake, in Paris, Kering lost 1.25%, Hermès 0.82% and LVMH 0.87%, while the Swiss Richemont lost 1.23% and the Italian groups Salvatore Ferragamo and Moncler respectively 3.36% and 1.28%.

In the numerous publications of the day before or today, Vivendi advances by 2.05% thanks to an increase in its turnover in the third quarter, while the Swiss chemical group Sika (+1.01%) is driven by a 5.6% increase in its turnover over the first nine months of the year.

On the downside, Bolloré lost 0.98% due to a 7% decline in its quarterly turnover, while Essilorluxottica lost 0.65% after a drop in its sales at current exchange rates in the third quarter.

(Written by Claude Chendjou, edited by Jean-Stéphane Brosse)

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