European stocks are set to open lower on Thursday, extending three days of losses, as worries over Fed's bond-buying policy continue to unnerve investors ahead of a critical Federal Reserve meeting due next week, at which there may be some clarity on the timing of the tapering.
After a bit of lull this week in terms of major U.S. economic data, traders will keep a close eye on retail sales and weekly jobless claims data later today for further clues about the health of the U.S. economy.
Meanwhile, adding to growth worries, the World Bank lowered its growth forecast for the global economy, citing deeper-than-expected recession in the euro area and a slowdown in major emerging economies.
In its latest report titled Global Economic Prospects, the lender cut its global growth forecast for this year to 2.2 percent from 2.4 percent forecast previously. Economic contraction in euro area is estimated to be 0.6 percent this year, compared with 0.1 percent estimated earlier.
Asian stocks are tumbling, with Japan's Nikkei index plunging over 5 percent deep into bear market territory, as the dollar fell to its lowest level against the yen in ten weeks on uncertainty over the Fed's future course of action and amid disappointment over recent policy announcements.
China's Shanghai Composite is down over 3 percent as trading resumed following the Dragon Boat holidays. Hong Kong's Hang Seng index is tumbling 2.9 percent, Australia's All Ordinaries index is down 0.6 percent and South Korea's Kospi is losing 0.9 percent.
In domestic corporate news, Canada-based Lundin Mining Corp. said that it will buy the Eagle nickel and copper mine in the U.S. from Anglo-Australian mining giant Rio Tinto Plc for about $325 million.
British lender Royal Bank of Scotland Group announced that Group Chief Executive Stephen Hester would step down from his position later this year as the lender, in which the U.K. government has an 81 percent stake, goes ahead with its privatization plan.
German energy firm RWE signed a pact with Petronas to acquire a 40 percent interest in the licence block 52 off the coast of Suriname.
Rhoen-Klinikum AG said its shareholders, with just over 90.5 percent of voting rights, supported a motion to change the company's strict voting-threshold statutes.
European stocks surrendered their early gains on Wednesday, as persistent worries about the pullback in economic stimulus from the Federal Reserve and a storm of public protests and fierce opposition from Greece's coalition government over its abrupt decision to shut down state broadcaster ERT offset optimism over encouraging data on Eurozone industrial production and British jobless claims. The benchmark indexes in France, the U.K. and Germany fell between 0.4 percent and 1 percent.
The major U.S. averages fell between 0.8 percent and 1.1 percent overnight, with the Dow dropping below the psychologically-important 15,000 level, driven by lingering concerns about the outlook for the Federal Reserve's stimulus program. Reports of violent crackdowns on protesters in Turkey and a lackluster Treasury bond auction also weighed on the markets.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.