Investing.com - European stocks extended losses on Thursday after the European Central Bank kept the euro zone interest rate at its record low level of 1% for the eleventh consecutive month.
During European afternoon trade, France’s CAC 40 was down 1.72%; Germany's DAX shed 1.15%; and the EURO STOXX 50 was down 1.64%. Britain's FTSE 100 slipped 1.17%, after the Bank of England also held its benchmark interest rate steady at a historic low of 0.5%. Both of the central banks' decisions were widely expected.
Banks were among the worst performers, with Credit Agricole shedding 3.54% and Societe Generale dropping 3.89%.
Fears over Greece's debt crisis also weighed on the markets after the gap between Greek borrowing costs and those of the German government on Wednesday widened to the highest level since 1999.
Following the ECB rates decision, investors awaited economists a press conference set to be held by the bank's president, Jean-Claude Trichet, which was expected to be dominated by questions about Greece.
The outlook for U.S. markets was also dim: Dow Jones Industrial Average futures indicated a fall of 0.32%, S&P 500 futures pointed to a drop of 0.36% and Nasdaq 100 futures indicated a slide of 0.25%.
Meanwhile, the U.S. Labor Department was set to release a key report on initial jobless claims, an important indicator of overall economic health.
During European afternoon trade, France’s CAC 40 was down 1.72%; Germany's DAX shed 1.15%; and the EURO STOXX 50 was down 1.64%. Britain's FTSE 100 slipped 1.17%, after the Bank of England also held its benchmark interest rate steady at a historic low of 0.5%. Both of the central banks' decisions were widely expected.
Banks were among the worst performers, with Credit Agricole shedding 3.54% and Societe Generale dropping 3.89%.
Fears over Greece's debt crisis also weighed on the markets after the gap between Greek borrowing costs and those of the German government on Wednesday widened to the highest level since 1999.
Following the ECB rates decision, investors awaited economists a press conference set to be held by the bank's president, Jean-Claude Trichet, which was expected to be dominated by questions about Greece.
The outlook for U.S. markets was also dim: Dow Jones Industrial Average futures indicated a fall of 0.32%, S&P 500 futures pointed to a drop of 0.36% and Nasdaq 100 futures indicated a slide of 0.25%.
Meanwhile, the U.S. Labor Department was set to release a key report on initial jobless claims, an important indicator of overall economic health.