Price movements
The European STOXX 600 index closed 0.2 percent lower, with sub-indices of defense, industrial and technology stocks declining by more than 1 percent each.
US consumer prices rose slightly more than expected in September, but the year-on-year increase was the smallest in more than three and a half years.
According to the CME Group’s Fed Watch tool, the report had little impact on expectations that the US Federal Reserve would cut interest rates by 25 basis points at its scheduled meeting in November.
Markets expect the European Central Bank to cut interest rates by approximately 50 basis points by the end of the year, according to data from the London Stock Exchange Group.
The French government is scheduled to announce its 2025 budget later Thursday.
It intends to implement tax increases that could reach 60 billion euros ($65.68 billion) and cut spending to address the growing fiscal deficit.
Markets are expected to closely monitor whether the budget will receive parliamentary approval without major amendments.
GSK shares rose 3.2 percent after the British pharmaceutical company agreed to pay up to $2.2 billion to settle lawsuits in the United States alleging that the heartburn drug (Zantac), which the company stopped producing, causes cancer.
Shares of Italy’s fourth-largest bank, BBER, jumped 8.2 percent to the top of the country’s main index after the lender presented a new business plan for the period 2024-2027.
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