The STOXX 600 fell 0.8% to a nearly four-month low as European banks dropped 2% and oil prices climbed more than 3%. France’s CAC 40 fell 0.5% to a more-than-six-month low, while ECB policymakers dampened near-term rate hike bets.
European shares fell on Thursday as a bond selloff and elevated oil prices stoked fears that higher inflation could hurt economic growth. The STOXX 600 closed 0.8% lower at a nearly four-month low, while European banks fell 2% to a more than three-month low. France’s CAC 40 declined 0.5% to a more-than-six-month low as concerns persisted over a budget deficit exceeding 5% of GDP.
Euro zone bond yields rose sharply as energy prices added to inflation concerns and investors sold debt from heavily indebted countries including France and Italy. Energy shares gained as oil prices climbed more than 3% on concerns about supply from the Middle East. ECB policymakers dampened near-term rate hike bets, saying underlying inflation trends showed a more benign picture.
Argenx fell 15.8% after discontinuing a Sjögren’s disease trial that an analysis found was unlikely to meet its primary aim; healthcare stocks declined 2.5%. Tesco rose 5.2% after raising the lower end of its full-year profit outlook.
