European stocks closed lower on Thursday, with real estate stocks leading the decline as investors grew concerned regarding the prospect of interest rates remaining high for a longer period.
The real estate sector fell 3.2% to its lowest level in more than two months, with German shares of LEG Immobilien falling 11.4% following the company suspended dividends.
The pan-European Stoxx 600 index closed down 0.2 percent, following recouping some of its losses earlier in the trading session.
All eyes will be on the European Central Bank next week, as it is expected to raise its key lending rate by 50 basis points amid many policy makers calling for further rate hikes at subsequent meetings.
European stocks had a good start to the year, but mixed economic data from China and fears that the European Central Bank will continue to tighten monetary for a longer period undermined stocks’ momentum through the end of February and into March.
European miners fell 2.7 percent, tracking lower copper prices.
Hugo Boss fell 2.1% following the German fashion house predicted slower 2023 sales growth than last year.
Credit Suisse shares fell 1.9 percent following the bank delayed publishing its annual report due to the US market regulator asking questions regarding previous financial statements.
As for Dassault Aviation, it rose 12.2 percent to a record high following the French aircraft manufacturer announced better-than-expected results for 2022.