Investing.com – European stock markets fell on Thursday amid caution ahead of the European Central Bank’s latest rate-setting meeting.
At 03:10 ET (0810 GMT), German shares were trading 0.6% lower, French shares were 0.6% lower and UK shares were 0.3% lower.
ECB meeting is of great importance
European shares gave back some of the gains made in the previous session as investors calmed amid growing signs they would soon resort to rate cuts.
Attention now turns to the central bank’s final meeting later in the session, where the central bank is expected to keep interest rates at a record 4.0%.
Eurozone inflation continues to fall, but policymakers are likely to reiterate that they need more evidence that inflation is under control and that continued wage increases will not make it sustainable.
The ECB’s new economic forecasts likely point to weaker economic growth this year, although it fell 11.3% in January from the previous month, data showed earlier on Thursday, illustrating weakness in the euro zone’s largest economy.
Interest rate futures are almost entirely priced in to the ECB’s first rate cut in June, with a total rate cut of 88 basis points expected throughout this year.
Hugo Boss signals weak trends among clients
In the corporate sector, Hugo Boss (ETR:) shares fell 16% after the German fashion retailer forecast operating profit for 2024 below market expectations, as it signaled persistently weak consumer confidence, especially in select European countries.
Lufthansa (ETR:) shares traded little changed after the German airline cut its 2024 operating margin forecast to 7.6% from a target of 8% as the impact of strikes and falling logistics profits will lead to higher expected operating losses in 2024. in the first quarter than in previous years, offsetting strong post-COVID travel demand.
Aviva Shares (LON:) rose 3% after the British insurance giant announced a 9% rise in annual operating profits, as well as an 8% rise in dividends as part of its plans to pay out an additional £300 million to shareholders.
Virgin Money (LON:) shares soared 35% after the surprise announcement that Nationwide was set to buy the bank, paying a 38% premium and valuing the bank at £2.9 billion.
Oil jumps thanks to China’s trade surplus
Oil prices stabilized on Thursday, largely extending recent gains following upbeat Chinese trade data and a smaller-than-expected rise in inventories.
By 3:10 a.m. ET, U.S. crude futures were trading unchanged at $79.13 a barrel, while the contract fell 0.1% to $82.92 a barrel.
Data released earlier Thursday showed China’s trade surplus in the first two months of 2024 widened more than expected, raising hopes that global trade is turning a corner.
Both benchmarks rose about 1% on Wednesday after rising for a sixth straight week, up 1.4 million barrels, below expectations for a 2.1 million barrel rise.
Additionally, shares rose 0.2% to $2,162.85 an ounce, hitting a new record high, while shares traded 0.1% lower at 1.0892.