BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks ended mostly lower on Thursday with disappointing eurozone economic data and the U.S. Federal Reserve's comments that ruled out any interest rate cuts in the foreseeable future triggering a sell-off in the markets.
The Bank of England today held the key interest rate and asset purchases unchanged and raised the growth outlook, while reiterating that policymakers would always aim to achieve the 2% inflation target.
The pan European Stoxx 600 shed 0.58%. Among the major markets in Europe, Germany ended notably lower with its benchmark DAX declining 0.85%. The U.K.'s FTSE 100 ended down 0.46% and Switzerland's SMI declined 0.24%, while France's CAC 40 edged up by 0.01%.
Volksawagen shares jumped 4% after the company reported first-quarter earnings that were in line with expectations and affirmed its ambitious annual targets.
Shares of BNP Paribas moved up more than 1% after the bank reported a 22% increase in first quarter net income, at 1.92 billion euros.
Shares of ING declined marginally, after the group's first-quarter net profit fell slightly short of expectations.
Shares of German fashion retailer Zalando declined sharply on weak first quarter numbers.
In economic news, survey data from IHS Markit showed that Eurozone's manufacturing sector shrunk for a third successive month in April, albeit at a slower pace.
The Manufacturing purchasing managers' index, or PMI, rose to 47.9 in April from 47.5 in March. The flash reading was 47.8 in April.
'The survey's output index is indicative of factory production falling at a quarterly rate of approximately 1%, setting the scene for the goods producing sector to act as a major drag on the economy in the second quarter,' Chris Williamson, Chief Business Economist at IHS Markit, said.
Manufacturers remained confident of a return to output growth for the next 12 months. The level of optimism remained weak and was slightly higher than March's 75-month low.
Germany's manufacturing PMI rose slightly to 44.4 in April from 44.1 in the previous month and France's factory PMI rose to 50.0 in April from 49.7 in March.
Italy's manufacturing PMI rose to 49.1 in April from 47.4 in March. Economists had expected a score of 47.7.
Spain's manufacturing PMI grew to 51.8 in April from 50.9 in the prior month, while Greece's factory PMI expanded to 56.6 in April from 54.7 in March.
Germany's retail sales fell for the first time in three months, defying expectations for a rise, data from the Federal Statistical Office showed on Thursday. Retail sales declined 2.1% year-on-year in March, after a 4.4% rise in February, which was revised from 4.7%. Economists had expected sales to rise 2.9%.
According to survey data from IHS Markit, UK construction output rose for the first time since the start of the year in April, driven by a strong increase in residential work, but overall activity remained subdued amid weaker demand and optimism.
The IHS Markit/CIPS UK Construction Purchasing Managers' Index, or PMI, climbed to 50.5 from 49.7 in March. Economists had forecast a score of 50.3.
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