The STOXX 50 fell 0.5%, and the STOXX 600 dropped 0.4% on Thursday, extending losses from the prior session as persistently high bond yields dampened investor sentiment.
STOXX drops amid inflation and yield concerns
Concerns about inflation and the potential economic impact of additional trade tariffs proposed by former President Trump added to the cautious mood. Markets also absorbed minutes from the latest FOMC meeting, highlighting the Federal Reserve’s inflation concerns and signaling a slower pace of rate cuts.
Retail and banking stocks were among the biggest losers, with Societe Generale (-1.8%), BNP Paribas (-1.7%), and UniCredit (-0.8%) leading the declines.
Autos slide while financials and healthcare gain
The auto sector also faced pressure, with BMW (-1.4%), Mercedes-Benz (-1.2%), and Volkswagen (-1.2%) posting losses. However, financial services and healthcare stocks stayed positive, including Novo Nordisk, which rose 0.8%.
