Major European equity markets experienced declines on Thursday, impacted by corporate earnings reports from both the U.S. and Europe. Meanwhile, expectations of forthcoming policy easing in the United States supported global bond markets.

The Federal Reserve maintained interest rates on Wednesday but hinted at a potential cut in September. Traders are anticipating a similar move from the Bank of England later today, with a 60% probability of a quarter-point cut.

European indices were mostly lower, with the pan-European STOXX 600 falling by 0.6%. Germany’s DAX and France’s CAC 40 both recorded losses of nearly 1.3%. The UK’s FTSE 100 declined by 0.3% ahead of the Bank of England’s interest rate decision at 11:00 GMT.

Stephane Ekolo, equity strategist at TFS Derivatives, noted, “The fact that some heavyweights are cutting guidance does not bode well going forward and might well explain why European markets are underperforming. Disappointing results, slowing industrial growth, fading Chinese consumer demand, and potential inflation resurgence create a challenging environment.”

In contrast, U.S. tech stocks showed resilience, with Nasdaq futures up by 0.1%. Shares of Meta Platforms (NASDAQ: META) surged 7% in pre-market trading following strong earnings. The Nasdaq rose by 3% on Wednesday, while the S&P 500 climbed 1.6%.

Tech stocks have rebounded sharply following recent declines, with Nvidia (NASDAQ: NVDA) gaining 13% on Wednesday, adding about $330 billion to its market value. Earnings reports from Apple (NASDAQ: AAPL) and Amazon.com (NASDAQ: AMZN) are expected later today.