European markets move slightly lower amid inflation worries; H&M plunges 13%
A photo shows the bell during a bell ceremony of the Euronext Brussels Stock Exchange in Brussels on March 18, 2024.
LONDON — European stocks moved slightly lower Thursday as investors faced global inflation worries.
The pan-European Stoxx 600 dipped 0.1% by 10:10 a.m. London time, with the sectors and major bourses trading in mixed territory. Media stocks added 0.5%, while retail shed 1.75%
H&M plunged more than 14% before paring losses slightly, after it reported a smaller-than-expected rise in second-quarter profits and cast doubt over its full-year profit margin target.
Sweden's Riksbank kept borrowing costs unchanged Thursday but signalled that it expects to resume easing again, with up to three cuts in the second half of the year.
Global market attention is shifting toward fresh U.S. inflation data on Friday, with May's personal consumption expenditures price index, the U.S. Federal Reserve's preferred inflation gauge, due to be released. Investors hope the report will show easing pricing pressures that could cement the likelihood the Fed will lower interest rates later this year.
Asia-Pacific markets traded lower overnight as the Japanese yen weakened to a near 38-year low late Wednesday, hitting 160.82 against the U.S. dollar, according to FactSet data. Meanwhile, U.S. S&P 500 futures fell slightly Wednesday night after the S&P 500 rose for a second day.
Data releases in Europe Thursday include Italy's latest consumer and business confidence numbers, and Spanish retail sales. An EU leader' summit begins in Brussels on Thursday and the Bank of England publishes its latest Financial Stability Report.