European stocks decline, BOE decision in focus

European stocks fell on Thursday, while investors caught their breath after the latest rises and awaited the Bank of England’s decision on monetary policy later on Thursday, while Spanish Bank Sabadell shares jumped after a takeover offer made by its competitor, BBVA.

By 0720 GMT, the European STOXX 600 index fell 0.1%, after jumping to record closing levels on two consecutive days.

According to Reuters, the automobile sector was the most affected, as it fell 1.2%, affected by a 5.5% decline in Mercedes-Benz shares.

Spanish Bank Sabadell shares rose 5.5% after its competitor, BBVA Bank, submitted a takeover offer worth 12.23 billion euros directly to shareholders, but the bank’s board of directors rejected the offer, while BBVA shares fell 5.4%.

The Belgian pharmaceutical company Argenex lost 7.8 percent after first-quarter profits.

Italian payments group Nexi shares jumped 6.6% after a larger-than-expected increase in core profits in the first quarter.

BA Semiconductor Industries shares rose 5.1% after it announced that it had received an order to purchase 26 hybrid interconnection systems.

The Bank of England is expected to announce its decision on monetary policy during Thursday, and it is possible that it will leave interest rates unchanged or take a step towards reducing them, but it will be cautious in giving clear indications regarding this decision.