European stocks slump after weak US session; DAX down 1%; BOE holds rates
The pan-European STOXX 600 was off 0.69 percent during lunchtime deals, with the majority of Europe's sectors posting declines.
The Bank of England's monetary policy committee voted to keep interest rates unchanged.
TDC saw shares skyrocket over 17 percent after the telecoms operator confirmed that it had received — and then rejected — a takeover approach from Australia's Macquarie and three Danish pension funds.
European stocks fell Thursday, as investors waded through the latest batch of corporate earnings.
The pan-European STOXX 600 was off 0.69 percent during lunchtime deals, with the majority of Europe's sectors posting declines. All major bourses were in negative territory, with Germany's DAX off more than 1 percent.
Volatile trading continues to be seen across markets worldwide this week, with Asia-Pacific markets closing mostly higher Thursday, while U.S. stocks closed under pressure Wednesday as interest rates climbed back toward multi-year highs.
Earnings season continues to shake up sentiment, with a number of major companies posting financial figures Thursday.
Zurich Insurance rose 2 percent after earnings beat expectations. Full-year net profit came in at $3 billion, having fallen 6 percent — however this surpassed analyst estimates of $2.72 billion, according to a Reuters poll. Sticking with the sector, Swiss Re rose over 4 percent after it said it was in talks with Japan's Softbank about a " potential minority investment ." The insurer did add that discussions were "at a very early stage."
TDC saw shares skyrocket over 17 percent after the telecoms operator confirmed that it had received — and then rejected — a takeover approach from Australia's Macquarie and three Danish pension funds.
In banking, Societe Generale GLE-FR posted an 82 percent drop in quarterly net income, impacted by restructuring costs and tax-related charges . Despite this, the results topped expectations, with shares rising 3.4 percent. Commerzbank saw a 51 percent fall in net profit during its fourth quarter, as the lender turned its attention to a major overhaul . Shares, however, traded higher.
UniCredit shares were up over 2 percent after results topped analyst expectations, while fellow Italian bank Banco BPM also saw shares jump 2 percent after it raised its target for reducing bad loans, according to Reuters.
BOE holds rates
The Bank of England's monetary policy committee voted unanimously to keep interest rates unchanged Thursday. The central bank also indicated the need for interest rates earlier and potentially more frequently than previously predicted.
Sterling spiked against the dollar on the news as higher rates in an economy tend to favor the local currency with the anticipation of more investment. The pound nearly hit 1.400 against the greenback after trading close to 1.388.
Teams from both the European Union and the U.K. are expected to carry on with their latest round of Brexit negotiations in Brussels, slated to finish Thursday. In one of the latest Reuters polls, market strategists suggested that the recent rise in the British pound is over, with concerns surrounding Brexit expected to add pressure to the U.K. currency soon.
—Reuters contributed to this report
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