Russia reduces the share of the Middle East and OPEC in the Indian oil market to unprecedented levels

European stock markets opened lower on Friday, hitting their lowest levels in over a month as concerns over the escalating conflict in the Middle East weighed on trader sentiment. However, L’Oreal shares (EPA:OREP) bucked the trend and rose after the French cosmetics giant reported better-than-expected quarterly sales results.

The European STOXX 600 index dropped 0.6 percent by 0714 GMT, marking a 1.6 percent decline for the week. If losses persist, the index is set to record its largest weekly drop since October of the previous year.

Major financial market indices in key European economies, including Germany, France, Italy, and Spain, all experienced declines ranging from 0.6 percent to 0.9 percent.

Tensions between Israel and Iran kept traders on edge amid fears that heightened commodity prices could lead to increased inflation and potentially delay the anticipated strong interest rate cut by the European Central Bank in June.

On a positive note, L’Oreal shares surged by 5.1 percent following the company’s report of nearly a 10 percent increase in first-quarter sales compared to the previous year. This boost in the cosmetics sector helped lift the broader personal and household goods sector index by 0.4 percent.

Additionally, Sodexo shares climbed 3.6 percent after the catering and facilities management company projected organic revenue growth for 2024 to be at the higher end of its expectations, between six and eight percent. Moreover, its sales during a six-month period met widespread estimates, further contributing to investor optimism.