FX.co ★ European Stocks Close Sharply Lower

European stocks concluded Thursday's session significantly lower, bringing an end to a four-day winning streak. This downturn came as investors processed a series of monetary policy announcements and considered the implications of increased deficit spending on economic growth. The Eurozone's STOXX 50 index fell by 1%, closing at 5,452, while the STOXX 600 slipped by 0.4%, ending at 553. Following the close of markets yesterday, the Federal Reserve maintained its interest rates but downgraded GDP forecasts and moderated the speed of its quantitative tightening efforts. Concurrently, the Swiss National Bank unexpectedly reduced its benchmark rate, whereas the Bank of England and the Riksbank left their interest rates unchanged. Meanwhile, members of the European Central Bank indicated potential for further rate cuts within the year. The banking sector experienced notable losses, with shares of Intesa Sanpaolo, BNP Paribas, and BBVA each declining close to 3%, thereby paring back gains from earlier in the month. Defense sector stocks also saw declines, as investors opted to take profits, resulting in Airbus, Rheinmetall, and Thales ending the day in negative territory.