Investing.com - European stock markets declined after the open on Thursday, as heavy losses on China's stock market and an ongoing drop in oil prices continued to weigh on sentiment.
During European morning trade, the EURO STOXX 50 shed 11 points, or 0.31%, France’s CAC 40 edged down 12 points, or 0.24%, Germany’s DAX 30 lost 61 points, or 0.57%, while London's FTSE 100 dropped 21 points, or 0.32%.
The Shanghai Composite took investors on another volatile ride on Thursday, falling by as much as 2.2% after the open, before paring losses after the midday break, and then plunging again in the last hour of trade to end down 3.4%.
Chinese stock markets sold off sharply earlier in the week amid growing concerns over the health of the Asian nation's economy and worries that Beijing may allow the yuan to continue to depreciate, fueling fears over a currency war that could destabilize the global economy.
Meanwhile, oil prices held near levels not seen since the peak of the global financial crisis in 2009, after a surprise buildup in U.S. oil stockpiles underlined concerns about a growing global oil glut.
New York-traded crude oil futures struggled below $41-a-barrel early Thursday, while London-traded Brent prices dropped below $47 for the first time in more than six years.
Minutes of the Federal Reserve's July meeting published on Wednesday showed that policymakers express broad concerns about lagging inflation and the weak global economy.
The minutes added that Fed officials were concerned about "recent decreases in oil prices and the possibility of adverse spillovers from slower economic growth in China."
U.S. equity markets pointed to a moderately lower open as traders looked ahead to U.S. data later in the session for further indications on the strength of the economy and the timing of an interest rate hike.
The Dow futures were down 42 points, or 0.25%, S&P 500 futures dropped 5 points, or 0.22%, while the Nasdaq 100 futures declined 11 points, or 0.24%.
The U.S. is set to release data on initial jobless claims, existing home sales and manufacturing activity in the Philadelphia region later Thursday.
Despite a recent batch of upbeat economic data, some traders believe the Fed could postpone raising interest rates next month as officials are likely to remain concerned over global growth and inflation pressures due to China’s shock currency devaluation move and weak commodity prices.
The US dollar index, which tracks the greenback against a basket of six major rivals, was at 96.50 early Thursday, little changed on the day after falling sharply on Wednesday, as prospects for a rate hike in September by the Federal Reserve appeared dim after the release of July meeting minutes.