EU Stocks Decline Amid Geopolitical Tensions and Rate Hike Uncertainty

European stocks declined on Thursday due to concerns over geopolitical tensions and uncertainty about Federal Reserve interest rates. Despite upbeat quarterly earnings from US chipmaker Nvidia, most sectors struggled to find support.

The Fed's decision to hike interest rates is now likely by the end of the year after Wednesday's data showed firmer-than-expected US inflation. The US Commerce Department reported that its personal consumption expenditures price index rose 0.2 percent in July, exceeding economists' expectations of a 0.1 percent increase.

The European Central Bank's meeting accounts suggested a rate hike could be needed in September, citing upside risks to inflation and downside risks to growth from the Middle East. Investors are awaiting Fed Chair Kevin Warsh's speech at Jackson Hole on Friday for further clues on the central bank's likely moves.