European Stocks Wobble Amid Economic Signals and Trade Tensions
European stocks fell on Thursday as ECB President Christine Lagarde discussed economic uncertainty, affecting rate-cut expectations. The STOXX 600 index dropped 0.3%, influenced by the ECB's rate cut and revised forecasts. U.S.-China trade relations and European political developments further impacted market movements, with notable fluctuations in travel, leisure, and defense industries.
European shares experienced a setback on Thursday following European Central Bank (ECB) President Christine Lagarde's remarks on economic uncertainty. Lagarde's comments led investors to adjust their expectations concerning future rate cuts.
The STOXX 600 index dropped 0.3% after the ECB reduced interest rates by 25 basis points and revised its inflation and growth forecasts against a backdrop of U.S. trade tensions. Travel and leisure stocks were particularly affected, registering a 1.2% decline.
In other significant movements, London's Wizz Air took a 27% hit due to missed profit forecasts, while German indices retraced gains amidst a U.S.-China trade development. Additionally, European defense stocks rose following NATO strategy updates and increased investment interest in defense spending.
(With inputs from agencies.)
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