European stocks fell ahead of ECB interest rate decision

On Thursday, European shares experienced a decline as investors exercised caution ahead of the European Central Bank’s (ECB) interest rate decision. However, Virgin Money shares saw an upsurge following expressions of interest from Britain’s National Building Society regarding a potential acquisition.

As of 0815 GMT, the European STOXX 600 index retreated by 0.3 percent, with the majority of sectors witnessing a downturn except for healthcare and insurance.

The sub-index for automobile and spare parts companies suffered the most significant losses, dropping by 1.1 percent and heading towards its largest decline in seven weeks.

Market participants eagerly awaited the ECB’s decision on interest rates, scheduled for release at 1315 GMT, with expectations leaning towards maintaining the rates unchanged at record high levels. ECB President Christine Lagarde is set to conduct a press conference at 1345 GMT to provide insights into the central bank’s decision-making process.

Virgin Money shares surged by 35.7 percent, marking their best day ever, after the announcement of a potential acquisition by the National Building Society, valued at approximately 2.9 billion pounds ($3.69 billion).

Conversely, Hugo Boss shares plummeted by 17 percent, landing at the bottom of the benchmark index. This decline followed the German fashion house’s announcement of anticipated operating profits for the year 2024, which fell below market expectations.