European Shares Edge Lower As Rate Worries Return To Haunt

(RTTNews) - European stocks drifted lower on Thursday as Brent crude futures held above the key $100-per-barrel level amid ongoing West Asia tensions and hawkish Federal Reserve commentary raised expectations of another Fed rate hike.

Meanwhile, U.S. President Donald Trump and Chinese President Xi Jinping will be meeting at the White House later today, with trade, artificial intelligence and critical minerals on the agenda.

Ahead of the crucial talks, U.S. Treasury Secretary Scott Bessent announced the extension of Busan trade truce from November 10 to January 10, easing the immediate risk of a renewed escalation in tariffs between the world's two largest economies.

The pan-European STOXX 600 dropped 0.6 percent to 636.07 after falling 0.4 percent on Wednesday.

The German DAX and France's CAC 40 both fell around 0.8 percent while the U.K.'s FTSE 100 slipped 0.2 percent.

Mercedes-Benz fell nearly 2 percent following reports that the automaker plans to cut €800 million in labor costs in Germany.

Renault, Volkswagen and BMW fell 2-3 percent despite EU new passenger car registrations rising 4.5 percent year-on-year in August.

French biotechnology company Carbios tumbled 3.8 percent after posting a net loss of 9.43 million euros in the first half of the year.

Swedish fashion retailer H&M lost 2.7 percent despite reporting a bigger-than-expected rise in third-quarter operating profit.

Johnson Matthey fell about 1 percent. The British specialty chemicals and sustainable technologies company said it would commence a share repurchase program to buy back up to a maximum consideration of £200 million common shares.

Shelly Group shares surged 4.4 percent after Schneider Electric announced that it intends to launch a €1.2 billion ($1.4 billion) bid to acquire the Bulgarian smart-home device maker.