European shares decline ahead of ECB statement

European shares fell on Thursday ahead of the European Central Bank meeting later on Thursday, as investors awaited indications of the bank’s plans to tighten monetary policy.

The pan-European Stoxx 600 index was down 0.5% by 0709 GMT. The index is heading towards incurring losses for the third consecutive session.

Financial markets are currently absorbing the European Central’s interest rate hike by 75 basis points by October, compared to previous expectations to raise it by 25 basis points in all previous ECB meetings, with inflation in the euro area reaching record highs.

The European Central Bank announces its decision at 1145 GMT, followed by a press conference at 1230.

Losses in European markets were widespread, with mining stocks leading the way. The energy sector was the only gainer among sectors, gaining 0.4 percent. Oil prices recovered with the support of stronger-than-expected Chinese exports in May, but soon gave up their gains.

As for individual stocks, shares of British American Tobacco rose 0.8 percent, after it said it was confident of achieving its financial goals, regardless of how long it takes to unload its Russian unit.