European Shares Decline On Inflation Worries

European stocks declined on Thursday, with recession worries and mixed earnings reports weighing on sentiment.

Fed Governor Christopher Waller is scheduled to speak later today amid speculation the Federal Reserve could raise its target fed funds rate by 1 percentage point at its July 26-27 meeting.

June’s producer price report may also offer more clues on what the Fed might do.

On the earnings front, major U.S. banks JPMorgan Chase and Morgan Stanley will report their financial results.

The pan European Stoxx 600 was down 0.8 percent at 409.61 after losing 1 percent on Wednesday.

The German DAX and the U.K.’s FTSE 100 were down around 0.7 percent each, while France’s CAC 40 index fell 1 percent.

Sweden’s Ericsson plunged 9 percent after its quarterly core profit missed estimates on rising costs.

British consumer credit reporting company Experian jumped 2.3 percent after its revenue in the first quarter grew 7 percent at actual exchange rates and 9 percent at constant exchange rates, benefiting from robust demand mainly in North America.

Investment manager Ashmore Group lost about 4 percent after the company saw its assets under management drop 18.3 percent to $64bn in the three months to June 2022.

Recruiter Hays advanced 1.7 percent after reporting a 23 percent jump in quarterly fees.

Bayer AG shares were down 1.3 percent. The German pharma and life sciences firm has inked a deal with Grünenthal, a company focused on pain management and related diseases, to sell its men’s health product Nebido, for up to 500 million euros.

Luxury fashion house Hugo Boss rallied 3.4 percent after raising its FY outlook.

Deutsche Telekom lost 2 percent after it agreed to sell 51 percent stake in GD Towers, which comprise of tower assets in Germany and Austria, to a consortium.

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