European stocks fell after ECB statements and Chinese growth data

European stocks began Wednesday’s trading session with a sharp decline after statements by European Central Bank officials reduced expectations of lowering interest rates, and lower-than-expected Chinese economic data also affected market sentiment.

According to Reuters, the European Stoxx 600 index fell 1.2% by 0814 GMT, recording its lowest levels in more than a month.

European Central Bank President Christine Lagarde said, in the latest statement issued by policymakers, that the bank is on the right track to return inflation to its target level of two percent, while Dutch Central Bank President Claas Knut said that the markets are rushing in their bets on lowering interest rates.

At the same time, data showed that China’s economic growth rate in the fourth quarter of last year was lower than market expectations, which increased risk aversion in buying stocks.

Shares of LVMH and Kring Luxury Goods, which are exposed to the Chinese market, fell 1.6 and 2.0 percent, respectively.

Among other major stocks that witnessed big movements, World Line rose 2.6 percent after Reuters reported that the payments group was reviewing options to reassure shareholders and avoid a takeover.