The CAC 40, France’s main stock market index, dropped by 1.03 percent at 10:00 AM Paris time, reaching 7,688.34 points, a decrease of 80.43 points. This follows a decline of 95.86 points the previous day, when the index closed at 7,779.21 points, down 1.22 percent. Analysts from Natixis pointed out that crude oil prices remain a key factor influencing the market. Reports suggest the White House is considering military actions against Iran ahead of the U.S. mid-term elections, which has increased uncertainty and driven up oil prices. At 10:00 AM Paris time, the global benchmark Brent crude oil from the North Sea was trading at 104.15 dollars, up 3.94 percent. In North America, the West Texas Intermediate (WTI) crude oil reached 91.67 dollars, a rise of 3.84 percent. Meanwhile, AFP journalists reported strong explosions in Riyadh, the capital of Saudi Arabia, while Houthi rebels from Yemen continue their attacks on the kingdom.
In this tense geopolitical environment, bond yields have risen again. The increase in oil prices is contributing to higher inflation, putting pressure on central banks to maintain or even raise their key interest rates. In Europe, the German 10-year bond yield, a key indicator of borrowing costs, climbed to 3.50 percent at 10:00 AM, up from 3.47 percent the previous day. France’s 10-year bond yield also rose, reaching 4.91 percent, an increase of 0.05 percentage points. French debt has come under greater scrutiny due to the country’s high levels of debt and budget deficits. This has led to tense parliamentary debates over the government’s proposed 2027 budget.
Investors are closely watching the European Central Bank (ECB) for further clues on its monetary policy. At 11:30 GMT, the minutes from the ECB’s September meeting will be released. This meeting had resulted in a decision to increase the bank’s key interest rates to combat rising inflation. In the meantime, the automotive supplier OPmobility saw its stock fall 19.37 percent to 10.03 euros at 10:00 AM. The company announced the previous day that it was reassessing its 2026 financial targets due to the ongoing crisis in the automotive industry and "continued geopolitical tensions in the Middle East." OPmobility now expects a "significant" net profit, down from its earlier forecast of an "improvement." The company also announced job cuts in France and Germany, which have led analysts to lower their expectations. "Given these factors, we are revising our forecasts downward and, as a result, we are also lowering our price target to 11 euros," said Christoph Laskawi from Deutsche Bank.
Meanwhile, the British medicines and health products regulator (MHRA) has revoked Valneva’s marketing authorization for its chikungunya vaccine Ixchiq, announced the Franco-Austrian laboratory. This decision followed an evaluation of the vaccine’s risk-benefit report. As a result, Valneva’s stock fell 6.60 percent to 2.44 euros.
European Markets Drop Amid Geopolitical Tensions and Rising Oil Prices
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Original sources:
- 🇫🇷MoneyVox



