US inflation above forecasts, tech under pressure, yields ease from peak

Macro & central banks

• US inflation data came in above expectations, sending borrowing costs higher across markets, and investors have pulled back their bets on a rate hike in October.
• The 10-year Treasury yield fell 1.6% to 5.104% on Thursday, after peaking at 5.333% the previous evening. The 5-year stands at 4.908%, the 20-year at 5.503% and the 30-year at 5.455%.
• Bonds also drew safe-haven demand as a broad rout in technology and artificial intelligence stocks pushed investors toward defensive assets.

Indices & tech

• The Stoxx Europe 600 slipped about 0.35%, erasing Wednesday's gains. The DAX lost 0.5%, the CAC 40 0.2% and the FTSE 100 0.1%.
• The selloff started on Wall Street overnight and spread to Asian markets. In Europe, ASML fell 6.4% despite third-quarter results published the day before, ASM dropped 9.8% and STMicroelectronics 7.1%.
• LVMH: third-quarter revenue of 18.5 billion euros, with 1% organic growth, in line with consensus. However, the Fashion & Leather division fell 5% on a comparable basis, worse than expected, weighed down by slowing Chinese demand. The stock touched 375.65 euros on Tuesday, its lowest level since August 2020, before rebounding 1.43% on Wednesday. The chart does not yet suggest a lasting reversal.
• Eutelsat: up 23.37% on Wednesday to 1.69 euros, its strongest one-day gain in 16 months, after Ukraine said Starlink had restricted its military-grade service. No contract has been announced so far.

Geopolitics & energy

• Volodymyr Zelensky said Ukraine will resume strikes on Russian refineries, in an interview with a major business newspaper. He criticized the withdrawal of US intelligence support and the simultaneous weakening of Starlink.
• Washington has proposed that European countries unfreeze part of Russia's sovereign assets and move them into a vehicle overseen by the United States. European delegates rejected the plan, which was presented during talks in Miami.

What to watch today

• The sources do not detail a macro calendar for the session.
• The 10-year yield, at 5.104% on Thursday, and how tech stocks react at the open.
• Whether LVMH holds the 375.65 euro area after Wednesday's rebound.
• Whether a contract materializes for Eutelsat, and what follows the refinery strikes, whose energy impact is not quantified