© Reuters.
By Peter Nurse
Investing.com – European stock markets fell Friday, as rising bond yields reinforced expectations of an economic slowdown while U.K. political turmoil continued.
By 03:55 ET (07:55 GMT), the in Germany traded 1.1% lower, the in France edged 1.4% lower and U.K.’s dropped 0.4%.
European bond yields have climbed sharply higher Friday, following on from U.S. Treasury yields rising to 14-year highs overnight, as the prospect of further aggressive interest rate hikes from not only the but also the and the soured investor sentiment.
The yield on the benchmark rose above 4% as the political tumult in the U.K. continued with the resignation of Prime Minister after six chaotic weeks marred by policy shocks.
U.K. slumped 1.4% on the month in September, down 6.9% on an annual basis, as consumers reined in their discretionary spending, while Britain’s grew by more than expected, underscoring the challenge facing new finance minister Jeremy Hunt and whoever succeeds Truss.
Market research firm GfK’s showed on Friday that U.K. consumers remain close to the gloomiest on record.
In corporate news, Adidas (ETR:) stock dropped over 8% as the German sporting goods maker cut its full-year outlook, citing weaker demand.
Renault (EPA:) stock fell 1.9% after the French car manufacturer said that supply constraints weighed on the number of cars it sold in the third quarter.
EssilorLuxottica (EPA:) stock fell 2.1%, weighed by the overall concerns about a slowing global economy even after the luxury eyewear maker reported an 8% rise in third-quarter , noting a rebound in sales in the Asia-Pacific region.
Deliveroo (LON:) stock rose 2.7% despite the British food delivery company guiding to full-year revenue at the lower end of its range due to the squeeze on consumer budgets. There had been fears it would have to cut the range again, as it did in July.
Oil prices edged lower Friday amid choppy trading, with the market caught between worries about a global economic slowdown and supply curbs from the globe’s top producers.
U.S. crude oil inventories fell surprisingly last week, suggesting demand in the world’s largest economy remained steady even as the Biden administration announced plans to release more crude from strategic reserves.
By 03:55 ET, traded 0.5% lower at $84.08 a barrel, while the contract fell 0.5% to $91.90.
Additionally, fell 0.6% to $1,627.25/oz, while traded 0.1% higher at 0.9792.
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