21.08.202510:49:27UTC+00European Stocks Hold Session Lower

European equities experienced a decline on Thursday as investor attention was directed towards the uncertain interest rate trajectory in both the Eurozone and the United States. The STOXX 50 index decreased by 0.4%, settling at 5,450, and marking its second consecutive day of losses. Similarly, the STOXX 600 fell by 0.3% to 557, retreating from the five-month high reached the previous day. In August, the Eurozone's PMI surprisingly climbed to a 15-month high, bolstered by new support from manufacturers. This uptick suggests a level of resilience to protectionist measures by significant trade partners and provides leverage to more hawkish members of the European Central Bank Governing Council, particularly as the survey indicated rising prices. Concurrently, the minutes from the Federal Open Market Committee revealed concerns among its members about the risk of inflation expectations becoming unanchored. The consumer discretionary sector was most affected, with shares in companies like LVMH and Kering each falling by 2%. In the banking sector of the broader STOXX 600, shareholders of Mediobanca rejected a proposal to acquire Banca Generali. This outcome increased the probability of Mediobanca being acquired by Banca MPS, which, in turn, exerted downward pressure on their respective share prices during the trading session.