European stocks fell on Thursday, erasing previous tech-driven gains, after disappointing results from automakers BMW and Volkswagen and a 7 per cent drop in Societe Generale's stock. The Stoxx 600 index decreased by 0.4 per cent as weak demand in China and poor performance in Societe Generale's retail unit impacted market sentiment. The decline in European stocks highlights growing concerns about economic pressures from weaker demand and ongoing macroeconomic challenges. Despite this, US equities continued to rise, with S&P 500 and Nasdaq 100 futures up 0.3 per cent and 0.4 per cent, respectively, bolstered by dovish signals from the Federal Reserve and strong Meta Platforms sales. Upcoming jobless claims and July unemployment data will be key indicators for the US labour market, following Fed Chair Jerome Powell's hints at potential interest rate cuts next month. Traders are also watching Amazon's earnings for insights into the impact of AI investments and anticipating Apple's report on the iPhone 16. In other news, the Bank of England is expected to cut rates by 25 basis points, and the dollar rose 0.3 per cent against other currencies. Treasury yields increased to 4.05 per cent, while oil prices extended gains following reports of Iran's retaliatory strike on Israel. Attribution: Bloomberg
