European Shares Decline On Interest-rate Concerns
European stocks were moving lower on Thursday after the U.S. Federal Reserve and Swiss National Bank both hiked their key policy rates by 75 basis points, as widely expected, to tackle surging inflation.
Norway’s central bank also raised its main interest rate to its highest level since 2011, adding to worries of a global economic slowdown.
Investors looked forward to the Bank of England (BOE) Monetary policy summary and interest rate decision later in the day for further direction on the rate outlook.
In economic releases, the confidence among French manufacturers eased further as expected in September, though marginally, survey results from the statistical office Insee showed.
The pan European Stoxx 600 was down 0.7 percent at 404.15 after gaining 0.9 percent on Wednesday.
The German DAX dropped 0.6 percent, Franc’s CAC 40 index shed 0.7 percent and the U.K.’s FTSE 100 was down 0.3 percent.
Credit Suisse fell over 1 percent. The Swiss bank is weighing plans to resurrect a “bad bank” to hold risky assets, according to the Financial Times.
Holcim was down 0.8 percent. The building materials maker said it has closed the acquisition of Cantillana, a specialty building solutions market leader in Belgium with 2022 estimated net sales of 80 million euros.
Finnish state-owned utility Fortum jumped 7.6 percent to extend gains from the session after it agreed to sell its 56 percent stake in German utility Uniper to the German government.
GSK fell over 1 percent in London after announcing an exclusive license agreement with Spero Therapeutics for tebipenem pivoxil hydrobromide, an oral carbapenem antibiotic to potentially treat complicated urinary tract infections.
Precious mining company Polymetal plummeted 11 percent after saying it is considering moving its main corporate base out of Russia.
Sportswear giant JD Sports Fashion plunged 5.3 percent after a warning that higher energy costs will dampen consumer spending.
French hospitality firm Accor slumped 7.8 percent after investment bank JP Morgan cut its rating on the stock from neutral to underweight, saying the group would not be able to return to its previous level of profitability.
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