The European markets got off to a positive start Thursday, but turned lower after crude oil prices reversed early gains. Investors also turned cautious ahead of a speech by Fed Chair Janet Yellen later today. Yellen is scheduled to participate in a conversation with former Fed chairs Ben Bernanke, Alan Greenspan and Paul Volcker.
European Central Bank policymakers discussed the possibility of a sharper interest rate cut in March, but decided that a smaller one was appropriate as further reductions cannot be ruled out if the inflation outlook worsens, the minutes of the policy meeting on March 9-10 released Thursday showed.
After the March policy session, the ECB announced a slew of stimulus measures that included a reduction to all of its main three interest rates and a new long term refinancing operation.
Members broadly supported a further cut in the deposit facility rate and, stressed the importance of communication and the link to the formulation of forward guidance, the report, which the ECB calls "the account" of the Governing Council session revealed.
"On the one hand, a sharper rate cut could be considered, together with indications that the effective lower bound would have been reached for all practical purposes," the report said.
"On the other hand, the proposed limited rate cut could be judged as appropriate for now, given the current assessment, while it would also not rule out the possibility and prospect of further cuts if warranted by the outlook for price stability."
Further, members also considered the scope for introducing an exemption scheme for the deposit facility rate applicable to banks' holdings of excess reserves, the minutes said. However, the idea was abandoned due to its complexity and the lack of evidence of negative side effects at present.
The Euro Stoxx 50 index of eurozone blue chip stocks decreased 1.30 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.81 percent.
The DAX of Germany dropped 0.98 percent and the CAC 40 of France fell 0.90 percent. The FTSE 100 of the U.K. declined 0.40 percent and the SMI of Switzerland finished lower by 0.09 percent.
In Frankfurt, Daimler dropped 4.77 percent, as it began trading on an ex-dividend basis.
Deutsche Bank declined 3.07 percent and Commerzbank surrendered 2.80 percent.
Wirecard fell 3.44 percent after climbing as much as 2 percent earlier in the session. The financial services and technology firm reported a 32 percent jump in 2015 net profit.
In Paris, BNP decreased 3.84 percent and Societe Generale weakened by 3.45 percent. Credit Agricole also finished lower by 2.28 percent.
Peugeot fell 2.34 percent and Renault lost 2.30 percent.
In London, Marks & Spencer Group climbed 3 percent. The retailer delivered mixed results for the fourth quarter, with another fall in quarterly sales that fell less than analysts expected.
J. Sainsbury advanced 2.68 percent after Credit Suisse upgraded its rating on the stock to "outperform" from "underperform".
German manufacturing turnover declined for the first time in three months in February, Destatis reported Thursday. Manufacturing turnover fell 0.5 percent in February from January, when it grew by revised 0.8 percent. This was the first fall since November.
French foreign trade deficit increased in February, as exports fell and imports rose, figures from customs office showed Thursday.
The trade deficit widened to EUR 5.18 billion in February from EUR 3.91 billion in the preceding month, which was revised from a deficit of EUR 3.71 billion reported earlier. Economists had expected a shortfall of EUR 3.7 billion for the month.
The French current account deficit increased notably in February on widening visible trade gap, the Bank of France reported Thursday. The current account gap widened to EUR 3.9 billion from EUR 2.2 billion in January.
U.K. labor productivity declined in the fourth quarter after rising for three straight quarters, the Office for National Statistics showed Thursday. Output per hour decreased 1.2 percent in the fourth quarter from a quarter ago offsetting a 0.6 percent rise in the previous three months. This was the biggest fall since the end of 2008.
U.K. house prices increased more than expected in the first quarter, survey data from the mortgage lender Halifax revealed Thursday. House prices advanced 10.1 percent in three months to March from last year after rising 9.7 percent in three months to February. Economists had forecast the pace to ease slightly to 9.5 percent.
First-time claims for U.S. unemployment benefits fell by more than expected in the week ended April 2nd, according to a report released by the Labor Department on Thursday. The report said initial jobless claims fell to 267,000, a decrease of 9,000 from the previous week's unrevised level of 276,000. Economists had expected claims to edge down to 272,000.
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Market Analysis
December 26, 2025 08:42 ET Third quarter economic growth data from some major economies including the U.S. were the main news in this holiday shortened week. GDP growth and industrial production data from the U.S. helped to boost morale, while the consumer confidence survey results were less upbeat. In Europe, the quarterly economic growth data from the U.K. drew attention, while the minutes of the Australian central bank’s latest policy session was in focus in Asia.