PARIS
\nEuropean shares fell on Friday and posted their biggest weekly loss in seven months as concerns about a wider Middle East conflict, rising government bond yields and disappointing earnings reports kept higher-risk equities under pressure.
\nThe pan-European STOXX 600 hit its lowest level in seven months, down 1.4%.
\nThe index is down 3.4% for the week as fears around widening geopolitical tensions in Gaza fed into worries about disruption in oil supplies, with expectations of interest rates remaining elevated for longer further dampening the mood.
\nRising government bond yields in Europe and in the US have added to risk-averse sentiment, with central bank policy makers, including Federal Reserve Chair Jerome Powell, hinting at continued restrictive monetary policy.
\nPowell\u2019s comments drove the 10-year US Treasury yield up to the 5% mark on Thursday.
\n\u201cGeopolitics is driving investor sentiment at this point, around rising commodity prices and the potential for that to feed into inflation,\u201d said Richard Flax, chief investment officer at Moneyfarm.
\nFlax said the broader trend of rising risk premiums had made investors cautious towards risk assets.
\nEarnings from the region have done little to help sentiment, with analysts warning about further pressure on margins from rising energy prices and given the euro zone\u2019s exposure to China.
\nSwedish garden equipment maker Husqvarna lost 8.0% after third-quarter revenue missed expectations.
\nMiners led declines, down 3.4%, weighed down by a 7.2% drop in Boliden after a bigger-than-expected dive in third-quarter profit hurt by high costs.<\/p>\n","protected":false},"excerpt":{"rendered":"
PARIS European shares fell on Friday and posted their biggest weekly loss in seven months as concerns about a wider Middle East conflict, rising government bond yields and disappointing earnings reports kept higher-risk equities under pressure. The pan-European STOXX 600 hit its lowest level in seven months, down 1.4%. The index is down 3.4% for […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-363158","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-business"},"yoast_head":"\n