European indices fall ahead of ECB decision

European stock markets on Thursday showed negative dynamics against the background of quarterly reports of companies and on the eve of the outcome of the meeting of the European Central Bank.

The main European indices are losing in price. The Stoxx Europe 600 composite index of the largest European companies fell by 0.76% to 431.97 points.

The British FTSE 100 lost 0.59%, the German DAX – 1.08%, the French CAC 40 – 0.7%, the Italian FTSE MIB and the Spanish IBEX 35 fell by 0.69%.

Many market participants, in anticipation of the ECB's decisions, assume that the bank will not change key interest rates after an aggressive cycle of raising them in the past months. Recall that in September, rates were raised by 25 basis points, and now the base rate on loans is 4.5%. The deposit rate is 4%, the margin loan rate is 4.75%.

At the same time, inflation in the eurozone continues to remain high, exceeding the target level by two times. In a recent interview, ECB President Christine Lagarde confirmed the regulator's determination to keep inflation at 2% in the medium term. She also expressed confidence that the ECB is moving in the right direction to achieve this goal.