European Shares Edge Lower On Rate Worries

(RTTNews) - European stocks declined on Thursday, a day after the U.S. Federal Reserve held interest rates steady but cautioned that inflation is still too high to start cutting policy rates.

Closer home, European Central Bank Governing Council member Joachim Nagel warned that consumer price growth in the euro zone is proving stubborn and that he and his colleagues won't simply lower borrowing costs automatically. Governing Council Madis Muller is due to speak later in the session.

In economic releases, Eurostat said in a report that industrial output in the euro zone declined by 0.1 percent in April compared to March.

Elsewhere, German wholesale prices continued to decline in May, albeit at a slower pace, Destatis reported.

Wholesale prices registered an annual decline of 0.7 percent in May, which was slower than the 1.8 percent decrease in April.

The pan European STOXX 600 dropped 0.6 percent to 520 after rallying 1.1 percent on Wednesday.

The German DAX shed 0.7 percent, France's CAC 40 lost 0.8 percent and the U.K.'s FTSE 100 was down 0.4 percent.

Bond yields across the euro zone rose, with the yield on the German 10-year bund last trading at 2.551 percent.

Automakers BMW, Renault, Mercedes Benz and Volkswagen fell 2-3 percent after the European Union announced a hike in tariffs on electric vehicles imported from China, potentially paving a way to trade war.

BT rallied 2.7 percent in London after Carlos Slim, the wealthiest individual in Latin America, bought a 3.2 percent in the broadband and mobile operator.

Halma soared 10.5 percent after the health and safety device maker posted strong annual results.

Homebuilder Crest Nicholson plummeted 8.4 percent after a profit warning.

Wise shares slumped 15 percent after the money transfer company forecast slower income growth in fiscal 2025 than fiscal 2024.

French rolling stock maker Alstom SA tumbled 3.1 percent in Paris.

The company has completed a share capital increase with shareholders' preferential subscription rights in an amount of 1 billion euros, including issue premium.

This was the final step of the previously announced 2 billion euros deleveraging plan.