European equities closed sharply lower on Thursday, pressured by broad-based declines in banking and industrial heavyweights. The Euro STOXX 50 shed 0.75% to finish at 6,422, while the STOXX Europe 600 lost 0.7% to close at 651.7.
The banking sector led the downturn, erasing much of the week’s earlier gains as worries over tighter financial conditions resurfaced. ECB minutes showed that some policymakers did not rule out a rate hike at the central bank’s June meeting, reviving concerns about further monetary tightening. UniCredit fell 3.2% and BNP Paribas slipped nearly 5%, while Santander, ING, and BBVA each dropped more than 2%.
Industrial names also weighed on the indices, with Safran and Airbus both declining by more than 1%. In addition, AI infrastructure stocks finished in negative territory despite robust earnings and upbeat guidance from Nvidia, which had fueled gains in U.S. markets. ASML and Siemens Energy each closed down by around 1%.
