European stock markets fell Thursday, suffering from profit-taking recent gains with investors digesting monetary policy decisions from a number of European central banks.
At 06:40 ET (10:40 GMT), the DAX index in Germany dropped 1.9%, the CAC 40 in France slipped 1.3%, and FTSE 100 in the UK fell 0.4%.
Central banks in focus
European equities retreated Thursday, with the pan-Europe Stoxx 600 on course to snap its four-session winning streak, with investors digesting the Federal Reserve’s outlook of sticky inflation and slowing growth after the U.S. central bank held rates unchanged at its latest policy-setting meeting on Wednesday.
The Fed also indicated that two quarter percentage point cuts are likely later this year despite the uncertainty presented by U.S. President Donald Trump’s trade policy.
In Europe, Sweden’s central bank, the Riksbank, kept its policy rate unchanged at 2.25% as expected earlier Thursday, while the Swiss National Bank cut its policy interest rate by 25 basis points to 0.25% from 0.5%.
The Bank of England is set to hold its base rate at 4.5%, with the policymakers having to cope with rising inflation as well as the economic uncertainty generated by the Trump administration’s tariffs and upcoming tax rises.
Commerzbank slumps
In the corporate sector, Commerzbank (ETR: CBKG) stock fell over 5% after CEO Bettina Orlopp said the lender hasn’t had talks with UniCredit (BIT: CRDI) since it last week got approval from the European Central Bank for taking a stake of just under 30%.
RWE (ETR: RWEG) stock fell almost 4% after the German energy company reported stronger-than-expected earnings in 2024, but faced with a more uncertain investment climate, announcing plans to tighten its project selection, increasing return requirements, and scaling back planned investments through 2030.
Sodexo (EPA: EXHO) stock slumped 20% after the French food caterer lowered its 2025 guidance, citing slower-than-expected organic growth in North America.
Hapag Lloyd (ETR: HLAG) stock fell 7% after the German container shipping liner reported a drop of almost 19% in its net profit for 2024 and proposed a sharp cut in its dividend, citing lower interest income and higher tax expenses.
Deutz’s (ETR: DEZG) stock fell 15% after the German engine maker’s adjusted earnings almost halved due to a weak economic environment and a lower production volume in its diesel and gas engines segment.
Crude steady after U.S. inventories
Oil prices slipped slightly Thursday, after posting a recovery in the previous session on signs of strong demand in the U.S., the world’s biggest fuel consumer.
At 06:40 ET, Brent crude futures fell 0.1% to $70.68 a barrel, and U.S. West Texas Intermediate crude dropped 0.2% to $66.81 a barrel.
Crude is recovering after slumping to an over three-year low earlier in March on concerns over sluggish demand, U.S. trade tariffs and increasing supplies.
U.S. government data, released on Wednesday, showed that crude oil inventories grew more than expected in the past week. But distillate stocks saw an unexpected, outsized draw, far outpacing builds in broader inventories and fuel stocks.
The distillate draw drummed up hopes that fuel demand in the U.S. remained robust despite signs of a cooling economy.
