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European stocks experienced a slight downturn on Thursday as investors took a moment to pause following recent gains and awaited the upcoming decision from the Bank of England regarding monetary policy. The European STOXX 600 index edged down by 0.1 percent as markets digested the latest developments.
Among the sectors, the automobile industry bore the brunt of the decline, slipping by 1.2 percent. This downturn was notably influenced by a 5.5 percent drop in the shares of Mercedes-Benz.
However, amidst the broader market decline, Spanish Bank Sabadell’s shares surged by 5.5 percent. This sharp increase came in response to a takeover offer made by its competitor, BBVA Bank, amounting to 12.23 billion euros. Despite the offer, Sabadell’s board of directors rejected it, leading to a 5.4 percent decline in BBVA’s shares.
In other market movements, Belgian pharmaceutical company Argenex’s shares declined significantly by 7.8 percent following its first-quarter profit report.
On a more positive note, Italian payments group Nexi witnessed a significant uptick, with its shares jumping by 6.6 percent. This surge followed a larger-than-expected increase in core profits during the first quarter.
Similarly, BA Semiconductor Industries saw a 5.1 percent increase in its shares after announcing a significant order for the purchase of 26 hybrid connection systems.
All eyes are now on the Bank of England’s monetary policy decision expected later on Thursday. Market expectations vary, with some anticipating no change in interest rates while others speculate about a potential reduction. However, given the current economic climate, the central bank is likely to exercise caution in providing clear indications regarding its decision. Investors are keenly awaiting the outcome of this crucial announcement for further market direction.
