In cautious trading on Thursday, European stocks mainly faced declines in anticipation of a decision on interest rates by the European Central Bank (ECB). The ECB is forecasted to maintain the existing interest rates. Still, the spotlight is on whether the ECB President, Christine Lagarde, will hint at potential rate cuts in June due to easing cost pressures and economic fragility.
After garnering a 0.2 percent rise on Wednesday, the pan-European STOXX 600 dipped by 0.3 percent to 505.10. The DAX from Germany and the FTSE 100 from the United Kingdom declined by 0.4 percent and 0.2 percent respectively. In contrast, France’s CAC 40 showed a slight increase.
Britain's pound currency regained strength against other currencies after remarks from the Bank of England's (BoE) policy maker, Megan Greene. She suggested that any interest rate cuts in the U.K. are not imminent and cautioned that Britain is at more risk of sustained inflation than the U.S.
Swiss fragrance and flavor producer, Givaudan, experienced a roughly 2 percent fall even though it reported an uptick in first-quarter sales. Mining company Kenmare Resources saw a 6 percent drop. The company reported decreased shipments in the first quarter but still expects to meet its annual guidance.
On a positive note, Darktrace, a firm specializing in artificial intelligence cybersecurity, witnessed a 6.2 percent surge following their report of growth in the third quarter. Bio-pharmaceutical titan AstraZeneca also saw a 1.5 percent increase after promising to raise its dividend this year.
French advertising firm, Publicis Groupe, saw its shares climb over 1 percent due to a 4.9 percent growth in net revenue in the first quarter, marking solid performance across all regions. The lender, Societe Generale, saw shares rally by 2.4 percent after announcing a deal with Groupe BPCE to sell its professional equipment financing business, Societe Generale Equipment Finance, for 1.1 billion euros.
However, Gerresheimer AG, a company producing packaging for medication and drug delivery devices, lost over 4 percent upon revealing a slight drop in the net income for the first quarter. Lufthansa, the airline, declined by 1.6 percent after suspending its flights to and from Tehran due to the current situation in the Middle East.
