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Europe Wednesday: STOXX 600 Falls 0.9% as Oil and Bond Yields Rise

The STOXX 600 fell about 0.9% by midday Wednesday, Oct. 7, as Brent topped $101 and France's 10-year yield jumped to about 4.92%.

By Global Market Now Staff · · 3 min read

The London skyline with the Gherkin tower and other office buildings beside the River Thames
Photo: Alev Takil / Unsplash

Why it matters

  • The STOXX 600 fell about 0.9% by midday, ending a three-day winning streak as oil and bond yields climbed.
  • France's 10-year yield rose about 16 basis points to 4.92%, while Germany's Bund yield edged up to 3.51%.
  • Pennon sank about 19% after a dividend cut and rights issue, and chip stocks BE Semiconductor and Infineon fell sharply.

Session recap: what happened in this region's trading day, with sources.

European shares fell on Wednesday, Oct. 7, as oil prices and government bond yields rose again. The STOXX Europe 600 traded at 631.00 around 12:40 GMT, down about 0.9% from Tuesday's close of 636.63, according to Yahoo Finance data. Trading Economics said the drop ended a three-day winning streak.

IndexLevel, about 12:40 GMTChange
STOXX Europe 600631.00−0.88%
Germany's DAX25,152.28−1.17%
France's CAC 407,782.61−1.05%
U.K.'s FTSE 10010,489.59−0.49%
Spain's IBEX 3519,121.50−1.66%
Italy's FTSE MIB50,149.21−2.17%

Source: Yahoo Finance chart data. Intraday levels; changes are from Tuesday's close.

Why are European stocks down today?

Oil is back above $100. Brent crude rose about 1% to $101.63 a barrel, Yahoo Finance data showed, after Houthi missile and drone attacks on Saudi Arabian energy targets, Investing.com reported. A storm threatening the Gulf of Mexico also lifted prices, dpa-AFX said via MarketScreener. Higher energy costs revive inflation fears and push bond yields up, which weighs on share prices.

How high are French and German bond yields?

France's rose the most. The 10-year French yield climbed 0.16 percentage point to 4.92%, close to the more than two-decade high above 5% it reached late last week, Trading Economics data showed. Germany's 10-year Bund yield rose 0.03 point to 3.51%. That leaves France paying about 1.4 percentage points more than Germany to borrow for 10 years.

Trading Economics said markets now see the European Central Bank raising rates twice more by March 2027. Doubts about France's budget ahead of the 2027 presidential election, and Spain's snap election on Nov. 29, add to the pressure, it said. Our Tuesday Europe recap covers the previous day's rally in French bonds.

Movers: Pennon, chipmakers fall; carmakers rise

British water company Pennon fell about 19% after announcing a dividend cut and a rights issue, Investing.com reported, with the shares at 368 pence around 12:40 GMT, Yahoo Finance data showed. Dutch chip-equipment maker BE Semiconductor fell 8.5% after a UBS downgrade, according to Investing.com. Infineon dropped 5.9%, Deutsche Bank lost 4.3% and ASML fell 2.5%, Yahoo Finance data showed.

Carmakers bucked the trend. Renault rose 3.8%, Volkswagen gained 2.2% and Stellantis added 1.6%. British protective-equipment maker Avon Technologies jumped 15.3% after guidance that beat expectations, Investing.com reported.

Euro slips toward 17-month low

The euro traded near $1.117 around 12:50 GMT, down from about $1.122 late Tuesday, Yahoo Finance data showed. It was trading near 17-month lows, dpa-AFX said.

What comes next?

Investors are waiting for minutes of the Federal Reserve's September meeting at 2 p.m. ET (18:00 GMT). Our day-ahead guide covers the full U.S. calendar. Asia's session is in our Asia Wednesday recap, and more coverage is on the Europe page.

Follow the rest of the trading day on our global market today page, with the latest Asia, Europe and Americas session recaps.

Sources

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