European Shares Decline As German Factory Orders Slump

European stocks were subdued on Thursday as investors awaited cues from the ECB’s rate decision as well as President Christine Lagarde’s press conference later in the day.

The central bank is expected to keep interest rates unchanged at record highs for the fourth policy meeting in a row but could signal potential future cuts in case there is more evidence that inflation remains under control.

Meanwhile, the European Central Bank’s updated economic projections are likely to reflect lower economic growth and inflation for the year.

In economic releases, data showed Germany’s factory orders declined sharply in January.

New orders in manufacturing posted a monthly decline of 11.3 percent, in contrast to the 12.0 percent increase in December. Economists had forecast a 6.0 percent fall.

Destatis said the sharp decline in January was due to the high volume of large orders in December 2023. On a yearly basis, new orders decreased 6.0 percent, reversing December’s 6.6 percent rise.

Elsewhere, data from mortgage lender Halifax showed that British house prices rose by 1.7 percent in the year to February, slowing from January’s 2.3 percent. Increase.

On a monthly basis, house prices advanced 0.4 percent from January, following a 1.2 percent gain in January and the expected 0.8 percent increase.

The pan European STOXX 600 was marginally lower at 497.85 after rising 0.4 percent in the previous session.

The German DAX and France’s CAC 40 both slipped around 0.3 percent, while the U.K.’s FTSE 100 was down 0.4 percent.

Stellantis N V., an automotive major, fell about 1 percent after saying that it would invest 5.6 billion euros in South American region from 2025 to 2030.

Shares of Grafton Group declined 2 percent in London after the building materials distributor and DIY retailer reported that its fiscal 2023 profit before tax fell 27 percent from last year.

Virgin Money UK soared 36 percent after Britain’s Nationwide Building Society agreed to buy the lender in a potential 2.9 billion…