European Stock Markets Close Lower Amid France Debt Concerns and Middle East Tensions

Key summary

European equity markets ended lower on Thursday as investors weighed French sovereign debt worries, rising bond yields, political unrest in France, and geopolitical instability in the Middle East driving up oil prices. The STOXX 600 index fell 1.05% to close at 637.74 points. The CAC-40 dropped 1.39% to 7,811.26 points, while the DAX declined 1.07% to 25,371.75 points and the FTSE 100 slipped 0.26% to 10,725.03 points. France's 10-year government bond yields rose above 5%, approaching levels not seen since 2002 following recent unrest in the country. Geopolitical tensions involving Houthi attacks on Saudi Arabia targets pushed crude oil prices to five-month highs, with WTI futures rising 2.39% to $99.47 per barrel and Brent futures climbing 4% to $113.17 per barrel. In France, Hermes shares fell 4.9% after reporting third-quarter revenue below analyst expectations. The FTSE 100 was pressured by sales in banking and mining sectors but supported by strong earnings from major companies; Rentokil shares rose 8.6% following robust operating revenue growth and a $200 million share buyback plan, while London Stock Exchange Group gained 4.3% after raising 2029 revenue forecasts and agreeing to acquire Octus for approximately $3.54 billion. Barclays shares dropped 2.3% after third-quarter pre-tax profit of £2.3 billion missed the £2.4 billion forecast, alongside a plan to cut around 5,000 jobs. The European Central Bank is scheduled to hold its monetary policy meeting on Thursday, October 29, with analysts expecting rates to remain at 2.50% despite inflation risks from energy prices potentially pushing inflation above the 2% target.