(Reuters) – European stocks slipped on Thursday as expectations for a slower post-pound economic recovery in the UK negatively affected London stock markets, while disappointing quarterly updates from Glencore (LON: GLEN) and AXA pressured overall sentiment.
The pan-European STOXX 600 index was down 0.4 percent by 0710 GMT, while Britain’s FTSE 100 index was down 1.1 percent.
British stocks, the most concentrated in the world, took a hit as the pound rallied after the Bank of England kept interest rates unchanged and warned of potential risks from cutting interest rates below zero.
Mining group Glencore plunged 4.3 percent after it decided not to distribute dividends to focus on debt reduction as the Covid-19 pandemic forced it to record provisions for impairment of $ 3.2 billion.
French AXA Insurance fell 2.6 percent after it cut its target for 2020 earnings and said it would not provide additional dividends to shareholders in the last quarter of the year.
On the bright side, Adidas gained 3.5% as the company expected a profit recovery in the third quarter and Lufthansa jumped 4.8% even after it said it did not expect demand for air travel to return to pre-crisis levels before 2024.