European Stocks Close Lower As Rate Hike Moves By Central Banks Weigh

(RTTNews) - European stocks closed lower on Thursday, weighed down by concerns about economic growth after the Bank of England and the Norges Bank raised interest rates by larger-than-expected 50 basis points, and the Swiss National Bank raised rates by 25 basis points.

Prospects of further tightening by the Federal Reserve hurt as well.

The pan European Stoxx 600 fell 0.51%. The U.K.'s FTSE 100 dropped 0.76%, Germany's DAX ended down 0.22% and France's CAC 40 lost 0.79%, while Switzerland's SMI pared losses and edged up 0.09%.

Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Finland, Greece, Iceland, Ireland, Norway, Portugal, Spain and Sweden closed weak.

Turkiye closed sharply higher, while Netherlands and Poland ended flat.

The Bank of England's Monetary Policy Committee, led by Governor Andrew Bailey, decided to increase the bank rate by a bigger-than-expected 50 basis points today.. Markets had forecast only a quarter point hike.

The bank has lifted the benchmark rate over the last thirteen consecutive policy sessions, taking it to the current 5%, the highest since 2008.

"If there were to be evidence of more persistent pressures, then further tightening in monetary policy would be required," the bank said.

The BoE said the interest rate would be adjusted as necessary to return inflation to the 2% target sustainably in the medium term.

The Swiss National Bank continued its policy tightening with yet another hike to its interest rates, but at a slower pace as expected.

After hiking its policy rate by 25 basis points to 1.75%, Switzerland's central bank said more such moves are likely to counter rising inflationary pressures.

Norway's central bank lifted the benchmark rate by a steeper-than-expected 50 basis points and hinted at another increase in August as higher wage growth and a weaker currency are set to push inflation higher in coming months.

In the UK market, Airtel Africa tumbled more than 5%. Tesco, United Utilities, Smith (DS), Auto Trader Group, Barclays, ABRDN, Persimmon, Fresnillo, Standard Chartered, Endeavour Mining and Scottish Mortgage lost 2 to 4%.

Ocado Group shares soared more than 32% after the Times newspaper reported possible talk of bid interest in the company.

Croda International and JD Sports Fashion gained 2.5% and 2.3%, respectively. B&M European Value Retail, Ashtead Group, Antofagasta and Halma also ended notably higher.

In the German market, Daimler Truck Holding drifted lower by 3.25%. Mercedes-Benz, Henkel, Fresenius, Commerzbank, Volkswagen, Deutsche Bank, Porsche, Vonovia and MTU Aero Engines lost 1 to 2.3%.

Puma rallied nearly 10%. Sartorius surged 4.7% and Zalando climbed nearly 3%. Adidas, Covestro, Siemens Energy, Merck, Deutsche Telekom and Deutsche Post gained 1 to 2.7%.

In Paris, TotalEnergies, WorldLine, Teleperformance, BNP Paribas, Societe Generale, Credit Agricole and Publicis Groupe lost 1.7 to 2.5%.

Capgemini, Airbus Group, Legrand, Safran and Renault also closed notably lower.

Data from Statistical Office Insee showed French manufacturers' confidence unexpectedly improved in June underpinned by the strength in the past and future production as well as the increase in order books.

The manufacturing sentiment index rose to 101 in June from a 26-month low of 99 in May. The reading was forecast to remain unchanged at 99.