European markets remained relatively stable on Thursday as investors prepared for the inauguration of the French parliamentary elections scheduled for the upcoming weekend.
Rising bond yields exerted additional pressure on the markets, as traders eagerly anticipated the release of the critical U.S. Personal Consumption Expenditures (PCE) inflation report on Friday, seeking further insight into the Federal Reserve’s potential rate adjustments. The pan-European STOXX 600 index experienced a slight decrease, closing at 514.43, following a 0.6 percent decline the previous day.
The German DAX index showed minimal movement, while France's CAC 40 saw a 0.3 percent dip, and the U.K.'s FTSE 100 fell by 0.1 percent.
In corporate developments, Swedish fashion giant Hennes & Mauritz AB suffered a sharp 13 percent decline after reporting second-quarter profits that fell short of expectations. German wind turbine manufacturer Nordex SE saw a 1 percent drop after announcing plans to resume production at its manufacturing facility in Iowa, United States.
Conversely, Watches of Switzerland Group, a British retailer specializing in Swiss watches and luxury goods, surged by 11 percent. The company indicated signs of stabilization in the U.K.’s premium and luxury watch market following a slump in sales post-COVID-19.
Pharmaceutical company GSK plunged 4.5 percent after the U.S. public health agency narrowed its usage recommendation for all respiratory syncytial virus (RSV) vaccines.
Among the mining sector, Anglo American, Antofagasta, and Glencore declined by 1-2 percent following data indicating a significant slowdown in the growth of China's industrial profits in May.
