European stocks fall on anticipation of a rate hike

European shares opened lower on Thursday as investors remained cautious ahead of a widely expected decision by the European Central Bank to raise interest rates, as well as the troubled Swiss bank Credit Suisse unveiling restructuring plans.

The pan-European Stoxx 600 index fell 0.3 percent after closing at a five-week high on Wednesday.

Credit Suisse shares lost 8.5 percent after it announced plans to raise 4 billion Swiss francs ($4.05 billion) by selling shares, cutting thousands of jobs and restructuring its investment bank, in an effort to recover from a series of heavy losses.

The bank’s stock was among the biggest losers on the Stoxx 600 index, falling to a two-week low.

Investors are awaiting the European Central Bank’s monetary policy decision, due at 1215 GMT, amid widespread expectations that the central bank will raise rates by 75 basis points.

The bank is also likely to take first steps to shrink its €8.8 trillion balance sheet, bloated by years of debt-buying and low-cost loans to banks.

Neste plunged 7.2% after the Finnish refiner reported lower-than-expected operating results in the third quarter.

Shares of Shell rose 2.1 percent after the energy giant posted a profit of $9.45 billion in the third quarter. It also revealed plans to significantly increase its dividend by the end of the year and expand its share buyback program.