PARIS (Reuters) – Major European stock markets were down at the open on Thursday, as the minutes of the Bank of Japan’s monetary policy meeting and weak demand for the latest auction of U.S. Treasury bonds revived investor concerns.

In Paris, the CAC 40 fell by 0.86% to 7,203.39 points at around 07:05 GMT. The Dax in Frankfurt lost 0.58%, while the FTSE in London declined by 0.81%.

The pan-European FTSEurofirst 300 index fell by 0.74%, the EuroStoxx 50 fell by 0.91% and the Stoxx 600 declined by 0.81%.

New York index futures suggest Wall Street will open in the green. The Dow Jones could advance by 0.06%, the Standard & Poor’s 500 by 0.1% and the Nasdaq by 0.35%.

The debates within the Bank of Japan took a more restrictive turn than investors had hoped, while the unexpected rate hike by the institution at the end of July fueled a broad movement of risk aversion.

In the United States, a Treasury bond issue met with weak demand from investors, rekindling concerns about growth and the sustainability of American debt, and encouraging investors to turn away from risky assets.

“Last week’s abrupt and volatile price repricing was likely exacerbated by summer liquidity conditions and the unwinding of leveraged bets,” said Tiffany Wilding, an economist at PIMCO.

Fed rate futures “look consistent with a tapering cycle in a non-recessionary environment, with the central bank normalizing rates quickly, but not as quickly as in a turnaround,” the economist added.

In terms of values, Deliveroo gained 6.6% after reporting a profit above consensus in the first half and announcing a share buyback.

Allianz gained 1.6% after the publication of its second-quarter results on Thursday.

(Written by Corentin Chappron, edited by Kate Entringer)

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