European stocks slipped at the opening bell on Thursday as investors scaled back expectations of imminent interest rate cuts from major central banks. The pan-European STOXX 600 fell 0.4%, with losses spread across most sectors as bond yields climbed.
Banking and tech stocks lead declines
Financials were among the worst performers, with HSBC dropping 1.2% and Deutsche Bank down 0.9% as higher bond yields pressured valuations. Tech shares also struggled, with ASML Holdings falling 1.5% after a broker downgrade.
FTSE 100 underperforms on strong pound
London’s FTSE 100 fell 0.6%, underperforming continental peers as a stronger pound weighed on multinational exporters. Mining stocks were particularly weak, with Anglo American dropping 2.1% after a downgrade.
DAX and CAC 40 show modest losses
Germany’s DAX declined 0.3% despite better-than-expected industrial production data, while France’s CAC 40 slipped 0.4%. Auto stocks were mixed, with Volkswagen gaining 0.5% but Renault falling 1.2%.
ECB policymakers dampen rate cut hopes
The selloff followed comments from ECB officials suggesting June might be the earliest possible date for rate reductions. Money markets now price just 115 basis points of cuts this year, down from 150 basis points in January.
Energy stocks buck the trend
Oil majors provided some support as crude prices held near 2024 highs. BP and TotalEnergies both gained around 0.8%, while Norway’s Equinor rose 1.2% after an upgrade.
Investors await US jobs data
Trading volumes were subdued as markets awaited Friday’s crucial US non-farm payrolls report, which could significantly influence global rate expectations.
Afternoon outlook
Analysts expect rangebound trading to continue unless fresh catalysts emerge, with technical support levels coming into focus for several major indices.
REFH – Newshub, 14 August 2025
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