European Markets React to Energy Slump and Await Powell's Insights

European shares faced a downturn on Thursday as energy stocks pulled the market down, with investors eagerly anticipating important economic data along with remarks from U.S. Federal Reserve Chair Jerome Powell. At 0830 GMT, the STOXX 600 index had fallen by 0.2%, largely influenced by a 1.7% drop in the energy sector.

Significant losses were also noted as oil prices plummeted by over 3% in anticipation of a potential U.S.-Iran nuclear agreement that could increase supply. Major oil companies such as BP and Shell experienced declines of 3.7% and 2.5%, respectively.

Looking ahead, investors are keenly awaiting the eurozone's first-quarter GDP and employment figures while Powell's statements later in the day are expected to provide crucial insight into future monetary policy. Meanwhile, U.S. retail sales data and Walmart's earnings could shed light on consumer sentiment.

(With inputs from agencies.)