EU Stocks Tumble Amid Fed Rate Hike Bets, Geopolitical Tensions
European stocks closed weak on Thursday amid concerns over geopolitical tensions and uncertainty about Fed interest rates. The pan-European Stoxx 600 ended down 0.69 percent, with the UK's FTSE 100 and France's CAC 40 closing lower by 0.79 percent and 1.68 percent respectively.
Despite upbeat quarterly earnings from US chipmaker Nvidia, stocks from most other sectors struggled to find support. The European Central Bank's meeting accounts suggested that a rate hike could be needed in September, with policymakers highlighting upside risks to inflation and downside risks to growth stemming from the Middle East.
Fed Chair Kevin Warsh's speech at Jackson Hole on Friday is expected to provide further clues on the central bank's likely moves. Fitch's review of France's sovereign credit rating also weighed on sentiment, as did French political uncertainty.