European stocks decline after weak results

European stocks fell on Thursday due to rising US Treasury yields and a series of weak earnings reports, before the European Central Bank announced its monetary policy decision later on Thursday.

By 0707 GMT, the European STOXX 600 index fell 1.1 percent following Wall Street’s decline on Wednesday, with long-term bond yields approaching the five percent level amid fears that US interest rates will continue to rise for a longer period.

The European Central Bank is also widely expected to hold interest rates at a record high of four percent by 1215 GMT, amid faltering economic activity in the euro zone.

Investors are also watching earnings reports, with shares of German chip systems manufacturer Extron falling 5.8 percent after third-quarter orders missed expectations.

Standard Chartered shares fell 12.8 percent, with pre-tax profits falling 33 percent in the third quarter, and Halffresh shares fell 9 percent after quarterly profits fell below expectations.

Car manufacturing stocks fell 2.9 percent, recording the largest losses on Thursday, with luxury car manufacturer Mercedes-Benz shares falling 5.5 percent after a drop in third-quarter profits.