European stocks decline with risk aversion due to poor corporate results

European stocks fell about 1 percent on Thursday as risk aversion was exacerbated by poor results for companies, including food company Nestlé, as a result of tensions caused by the war in the Middle East and uncertainty over interest rates.

By 0705 GMT, the European STOXX 600 index fell 0.8 percent, reaching its lowest level in more than a week.

Geopolitical tensions continued to escalate as anti-Israel protests erupted across the Middle East, while US Treasury yields jumped to multi-year highs ahead of a speech by Federal Reserve Chairman Jerome Powell later on Thursday.

Nestlé shares fell nearly 2 percent after the giant Swiss company announced on Thursday that it had recorded a lower-than-expected growth in sales during nine months, as the rise in product prices led to shoppers being reluctant to buy.

French automaker Renault shares fell 4.6 percent as the pace of sales growth slowed due to the decline in the value of the currency.

Nokia shares fell 1.8 percent after the Finnish communications equipment company announced plans to cut jobs after recording a decline in third-quarter sales.

Tesla shares, listed on the Frankfurt Stock Exchange, fell 5.1 percent after the electric car maker failed to meet gross profit margin expectations for the third quarter, while Netflix shares jumped 12.5 percent after it exceeded estimates regarding subscribers. The new ones.