European markets experienced a significant decline for the third consecutive session on Thursday, as investors grappled with the impact of the Middle East crisis, earnings reports, and economic data. The pan-European Stoxx 600 index ended the day 1.16% lower, marking its lowest close since March 15, according to LSEG data. Leading the losses were automotive stocks, which fell by 2.12%, primarily driven by a 7% drop in Renault shares due to missed revenue expectations. However, tech stocks managed to buck the trend with a modest 0.6% increase.

This decline in European markets echoes negative sentiment seen across other regions. Asia-Pacific markets, including Japan, South Korea, and Hong Kong, experienced losses of around 2% each. These losses followed a similar trend on Wall Street the day before, as U.S. Treasury yields reached multiyear highs, with the 10-year Treasury yield surpassing 4.9% for the first time since 2007. As a result, U.S. stocks were marginally lower on Thursday as investors awaited comments from Federal Reserve Chair Jerome Powell, which were highly anticipated.

The European stock market experienced a sharp decline on Thursday, with the Stoxx 600 index closing below 440 points for the first time since March. The U.K.'s FTSE 100 dropped by 1.17%, while France's CAC 40 and Germany's DAX declined by 0.64% and 0.33%, respectively. Additionally, the London Stock Exchange (LSE) restricted trading to the FTSE 100, FTSE 250, and IOB securities, suspending all other instruments around 30 minutes before the end of the session due to an unspecified "incident." The LSE stated that these halted orders would be expired and there would be no closing auction in affected instruments. Further details regarding the incident are yet to be disclosed.

The London Stock Exchange issued a statement on Thursday afternoon, indicating that it was actively investigating the incident. It announced that only FTSE 100, FTSE 250, and IOB securities would be available for trading but did not provide any further information. At 3:46 p.m. London time, the LSE provided an update, stating that all other halted orders would be expired.

On a different note, initial filings for unemployment benefits in the United States showed a slight decrease last week, reaffirming the tightness of the labor market and potentially contributing to persistent inflation concerns.

In early trading, the S&P 500 opened with a modest increase, while the Dow remained mostly flat, and the Nasdaq Composite saw a 0.4% rise.

Yields also garnered attention, with the U.K. gilt yield reaching its highest point since August 22 at 4.726%, and the German 10-year bund yield increasing to its highest level since October 5 at 2.958%. Bond prices moved inversely to these yields.

Several companies faced challenges within their respective industries. Renault reported third-quarter revenue slightly below consensus, leading to a 7% decrease in shares. Nestle missed its nine-month sales estimate, citing higher product prices amidst limited consumer spending due to high inflation, resulting in a 2% dip in Nestle shares. Rentokil experienced a 14% drop in shares after acknowledging a softening demand in North America. Nokia announced plans to cut up to 14,000 jobs in an effort to optimize operations and combat a challenging market environment, leading to a 2% decline in its shares.

However, it wasn't all gloom in the markets. Telecom group Telia experienced a positive momentum, with a 9% increase in its shares, after raising its outlook for full-year core profit. Telia now expects low single-digit growth in its EBITDA for the year, whereas initial forecasts predicted flat-to-low single-digit growth. Furthermore, Nestle CEO Mark Schneider expressed confidence that real internal growth would turn positive in the second half of the year and be the main driver of growth going forward.

In conclusion, European markets faced significant declines on Thursday amid concerns surrounding the Middle East crisis, earnings reports, and economic data. The London Stock Exchange restricted trading due to an "incident," while several companies grappled with challenges in their respective industries. Nevertheless, some companies, such as Telia, managed to achieve positive growth. Investors continue to monitor ongoing developments and await further commentary from key market figures.