European stocks are falling with anticipation of the ECB’s interest rate decision

European stocks fell on Thursday after investors received mixed signals from the Federal Reserve regarding monetary tightening, with the European Central Bank awaiting an interest rate decision later in the day.

The pan-European Stoxx 600 index fell 0.8 percent, led by auto stocks, which fell 2.3 percent.

The oil and gas index was the only gainer, rising 1.3 percent.

The Federal Reserve raised the key interest rate by 25 basis points to a range of between 5% and 5.25%, as expected, but backtracked from its statement that it “anticipates” the need for further increases.

However, Federal Reserve Chairman Jerome Powell said afterwards that it was too early to say the rate hike cycle was over.

All eyes are now focused on the European Central Bank’s decision on interest rates, which is scheduled to be announced at 1215 GMT, as the central bank is expected to raise interest rates by another quarter of a percentage point, but it is not excluded to announce a larger increase, amid suffering from persistent inflation.

Shell plc jumped 2.4 percent, with better-than-expected earnings, although its first-quarter profit fell slightly from the previous quarter as energy prices slowed.

The STOXX 600 index was affected by a 4.8 percent decline in the Danish Novo Nordisk after it said it would reduce supply of doses of the obesity drug Wigovi in the United States due to increased demand.