European stocks decline as the minutes of the US Central Bank meeting pressure on market sentiment

European stocks fell on Thursday, pressured by a drop in BAE Systems after it agreed to buy the aerospace unit of Bull Corp, while minutes from the Federal Reserve’s July meeting weighed on sentiment as they raised concerns about interest rates staying higher for longer.

By 0713 GMT, the pan-European Stoxx 600 index was down 0.5 percent, touching its lowest level in more than a month.

Shares in BAE Systems, Britain’s largest defense company, fell after it said it had agreed to buy aviation assets from Bullcorp in a $5.55 billion cash deal.

The European aerospace and defense sector fell 1.2 percent.

The performance of futures contracts on Wall Street was mixed after the market closed lower on Wednesday, with minutes of the US Central Bank meeting showing that its officials were divided regarding the need for more interest rate hikes.

Bond yields jumped across Europe, with sharp rises in Italy and Germany, weighing on stocks.

Dutch insurance company Aegon fell 4.7 percent after the company announced financial results for the first half of the year.

Shares in Norway also fell 0.6 percent before the central bank there announced its decision on interest rates.