European equities declined on Thursday, pressured by sharp losses in healthcare and industrial names. Investors shifted focus to upcoming U.S. economic data and remarks from Federal Reserve officials that could influence global monetary policy.
By 07:08 GMT, the pan-European STOXX 600 index fell 0.5% to 551.3 points. Major benchmarks mirrored the slide, with Germany’s DAX and the UK’s FTSE 100 both down 0.4%. Regional weakness pointed to investor caution ahead of a busy day for economic updates.
Healthcare and Industrials Drag
Healthcare stocks were among the biggest decliners, dropping 1.1%. Shares of Siemens Healthineers plunged 6% after the U.S. Commerce Department announced national security investigations into imports of personal protective equipment, medical devices, robotics, and industrial machinery.
The UK’s Smith+Nephew also slipped 1.1%, adding to the sector’s downturn. Industrials followed closely, with the construction and materials sector down 1.1% and industrial goods and services falling 0.6%.
Key sector performance:
- Healthcare: -1.1% (Siemens Healthineers -6%)
- Construction & Materials: -1.1%
- Industrial Goods & Services: -0.6%
These declines underscored investor sensitivity to regulatory pressures and trade-related risks, which have weighed heavily on cyclical industries this year.
Retail Bright Spot as H&M Surges
Not all sectors traded in the red. Swedish retailer H&M jumped 9.4% after posting a far stronger-than-expected rise in third-quarter profit, signaling resilience in Europe’s retail landscape despite inflationary headwinds.
Meanwhile, traders looked beyond Europe for policy direction. At least seven Federal Reserve officials were scheduled to deliver public remarks later in the day, potentially offering clues on the U.S. rate trajectory. Investors also awaited the second estimate of U.S. second-quarter GDP and weekly jobless claims, both seen as critical indicators of economic momentum.
With uncertainty around U.S. monetary policy and global growth trends, analysts expect volatility in European equities to persist in the near term.