European Shares Tumble As Bond Yields Rise Again

(RTTNews) - European stocks tumbled on Friday amid worries about persistent inflation and the Federal Reserve's aggressive rate-hike cycle.

U.S. 10-year Treasury yields rose to a new 14-year high of 4.272 percent after Philadelphia Fed President Patrick Harker said that the central bank was not done yet with rate hikes.

Germany's 10-year bond yields hit a fresh 11-year high amid expectations that the European Central Bank (ECB) will raise interest rates sharply again next week.

The pan European Stoxx 600 was down 1.6 percent at 392.22 after gaining 0.3 percent on Thursday.

The German DAX and France's CAC 40 index both fell around 1.7 percent, while the U.K.'s FTSE 100 was down 0.8 percent amid the ongoing political turmoil following the resignation of Prime Minister Liz Truss after just 45 days in office.

METRO AG shares were down 1.6 percent. After reporting a 11.8 percent increase in sales in the fourth quarter of its financial year, the German wholesale giant warned that the next year continues to be challenging with high inflation and growing cost pressure.

Adidas nosedived almost 10 percent as the sporting goods maker cut its full-year outlook, citing weakening demand.

Italy's biggest utility, Enel, declined 2.4 percent after it agreed to sell a 50 percent interest in grid digitalization specialist Gridspertise Srl to private equity fund CVC Capital Partners Fund VIII.

Swedish telecom operator Telia plummeted 7.6 percent after reporting slightly worse-than-expected third-quarter net profit and downgrading its guidance.

French cosmetics group L'Oreal slumped 4.8 percent despite posting robust sales growth over the third quarter.

Automaker Renault fell 2.6 percent after reporting a dip in Q3 auto sales, hit by supply constraints.

Rexel Group shares were down more than 3 percent. The energy products and services firm said that one of its entities has been placed under a formal probe related to derogation case requiring it to set aside a bank guarantee of 20 million euros and a cash guarantee of 48 million euros to be paid by January 15, 2023.

Luxury eyewear maker EssilorLuxottica tumbled 3.9 percent despite the company reporting a rise in third-quarter revenues.

Media company Vivendi lost 3.5 percent after saying it will go ahead with the spin off its publishing business Editis.

InterContinental Hotels slumped 4.6 percent. The British hotel chain said that Paul Edgecliffe-Johnson will step down as chief financial officer.

London Stock Exchange Group declined 2.7 percent after sticking with targets in a quarterly update.

Online food delivery firm Deliveroo surged nearly 5 percent after reporting that its third-quarter gross transaction value increased 8 percent to 1.70 billion pounds from last year's 1.57 billion pounds.

The day's economic reports proved to be a mixed bag, with the decline in U.K. retail sales deepening unexpectedly in September while a measure of U.K. consumer sentiment unexpectedly improved in October, despite soaring inflation and political uncertainty - separate reports showed.