The Stoxx 600 fell by 0.4% after approaching its historical highs during the session.
The most defensive sectors performed better, while technology closed 5% below the values reached in the previous session amid fears of increased regulation of data centres in the US. Among companies, Rheinmetall saw its shares drop by more than 16% after revising its forecasts for 2026 downwards again.
By indices, the IBEX 35 rose by 0.6%, to around 19,450 points, supported by banking, ArcelorMittal, and Laboratorios Rovi. Meanwhile, the Euro Stoxx 50 fell by 0.5%. The Spanish selective index maintained better relative performance than the rest of the region.
The Bank of England raised interest rates by 25 basis points, to 4.00%, its first increase since August 2023. The decision was in response to the rise in British inflation, which reached 3.5% in September and could be close to 5% by mid-2027, according to the institution's forecasts. The rising energy costs associated with the Middle East conflict remain the main inflationary risk. However, Governor Andrew Bailey indicated that the decision does not necessarily imply a succession of further increases.
In the United States, the Democratic victory in both chambers of Congress continued to influence sector performance. The possibility of increased oversight of data centre development and artificial intelligence led to new sales in semiconductor manufacturers and technology infrastructure providers.
At the European close, the S&P 500 fell by 2.9%, the Nasdaq by 4.3%, and the Dow Jones by 2.4%. Sales were concentrated among semiconductor manufacturers, while there was a rotation towards more defensive stocks.
Fixed Income
Sovereign yields fell on both sides of the Atlantic, supported by the sharp correction in oil prices since the beginning of the week. In the United States, the prospect of a divided Congress reinforced expectations of lower fiscal expansion, while the potential slowdown in investments in data centres raised doubts about future financing demand. In Europe, the movement occurred despite the Bank of England's rate hike.
The yield on the 10-year German Bund stood around 3.24%, down 3 basis points. Meanwhile, the yield on the 10-year US Treasury was around 4.83%, after falling 5 basis points. Both benchmarks remained close to their lows of the last two months, as investors awaited the publication of the US employment report on Friday.
Commodities and currencies
The Brent crude rose by around 2.2%, reaching $96.7 per barrel, after recording an 8.7% drop on Wednesday, its largest decline in recent months.
The euro gained slightly against the dollar. The EUR/USD was around 1.123.