Stock markets in Europe moved lower on Thursday as investors digested comments from the U.S. Federal Reserve and waited to hear from the Bank of England. The Swiss National Bank left its rate unchanged.
The pan-European Stoxx 600 was 0.49 percent lower with most sectors moving south.
Retail stocks were among the worst-performing sectors this morning. H&M dropped 2.5 percent after reporting May sales figures below expectations. The U.K.’s retailer Next also dropped 2.8 percent after a rating downgrade by Credit Suisse. U.K. retail sales data is due at 9.30 a.m. London time.
The telecommunications sector was also down with Proximus falling more than 3 percent in early trade after a rating downgrade by Citigroup.
Looking at individual stocks, Raiffeisen Bank fell as much as 6 percent, hitting the bottom of the European benchmark. The stock had already dropped on Wednesday following a rating downgrade by Barlcays saying it is relatively expensive and less geared to rising rates than peers.
Petrofac on the other hand led the gains in early deals, up by nearly 4 percent, after a rating upgrade by Jefferies. The oil firm has been up in the last few days following news that it has signed a $35 million deal with Kuwait Oil Company.
Hexagon, which dominated European shares on Thursday on a potential merger deal, also moved slightly higher after announcing Thursday that is to invest 90 million euros in a new factory in China.
Central Banks
The U.S. Federal Reserve decided to raise rates by a quarter point but investors are worried about the weaker-than-expected inflation and slower economic growth. Meanwhile, the Washington Post reported that President Donald Trump is being investigated by a special counsel for possible obstruction of justice.
Back in Europe, the Bank of England is set to announce its latest monetary decision at 12 p.m. London time.
The Swiss National Bank has kept its target range for three-month Swiss franc LIBOR at -1.25 percent to -0.25 percent and the rate it charges on sight deposits at -0.75 percent, as analysts expected. It said Thursday it remained committed to negative interest rates and currency market.
Eurozone finance ministers are also gathering in Luxembourg Thursday to discuss debt relief for Greece.
In the corporate world, Nokia has launched the world’s fastest network chips and VW is set to offer an extra two-year guarantee to EU car owners but no money back in the fallout of the emissions scandal.
Source: CNBC
