European stocks could weaken further on Thursday, following sharp losses in the previous session, as investors continue to fret about a slowing U.S. economy. The Fed's Beige Book regional survey released yesterday indicated that economic activity has dropped off in several regions of the United States, although the broader economy continued to expand.
Asian stock markets fell for a sixth straight day Thursday, as signs of slowing economic growth prompted investors to shun riskier assets. Crude futures are rising 54 cents to $101.28 a barrel after OPEC failed to reach a deal on raising output targets.
On the macroeconomic front, Germany has admitted that Greece needs an additional bailout to tackle its worsening debt crisis, noting that Athens had failed to overhaul its stricken economy despite availing part of a €110bn rescue deal agreed last year.
In a letter sent by German Finance Minister Wolfgang Schaeuble to ECB, IMF, the European Commission and 16 finance ministers of the other euro-zone nations, Schaeuble warned that the euro-zone would face its first sovereign debt default in just over a month's time if an agreement was not reached soon "on a new program for Greece in order to close the financing gap and prevent default."
The Bank of England is widely expected to leave its record low interest rate as well as the size of quantitative easing unchanged once again, given the softness of the economy amid huge fiscal consolidation. The European Central Bank is also expected to leave interest rates on hold, but may signal a hike in interest rates as early as next month.
In corporate news, Europe's biggest airline Air France-KLM reported that passenger traffic for May increased by 4.9 percent from a year earlier, while cargo traffic dropped 1.4 percent.
Private equity giant KKR & Co has entered the fray to acquire a minority stake in Dutch lender ING Groep NV's U.S. online bank, ING Direct USA, the Bloomberg reported.
Ageas Insurance International and BGL BNP Paribas have signed an agreement with BNP Paribas Cardif, parent company of Cardif Lux International, to merge their activities.
European stocks saw further downside on Wednesday, with losses among banks and miners particularly pronounced, after the head of the U.S. Federal Reserve gave no indication of further support measures for the world's largest economy.
The Euro Stoxx 50 index of eurozone bluechip stocks and the Stoxx Europe 50 index, which includes some major U.K. companies, lost about 0.8 percent each, the German DAX dropped 0.6 percent, France's CAC 40 fell 0.9 percent and the U.K.'s FTSE 100 slid a percent.
U.S. stocks extended a recent downward move overnight, with the major averages once again falling to their worst closing levels in over two months, as growth concerns continued to weigh on sentiment. The Dow edged down 0.2 percent, the Nasdaq lost a percent and the S&P 500 slid 0.4 percent.
Federal Reserve Chairman Ben Bernanke on Tuesday indicated the Fed is unlikely to take additional steps to prop up the economy even though the recovery has been "uneven" and "frustratingly slow.
For comments and feedback contact: editorial@rttnews.com
May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.