Investors are hotly awaiting the outcome of the ECB’s latest monetary policy gathering (Yann Schreiber)

London (AFP) – Europe’s stock markets slid as the euro rose Thursday, with global growth concerns stalking investors before a European Central Bank interest rate decision.

Around midday, London’s benchmark FTSE 100 index lost 0.4 percent in value, with a jump in oil prices offering little support energy sector shares.

In early afternoon eurozone deals, Frankfurt’s DAX 30 index retreated 0.5 percent and the Paris CAC 40 was down 0.4 percent.

Investors are now hotly awaiting the outcome of the ECB’s latest monetary policy gathering at 1245 GMT.

With no change expected, much of the focus will be on likely downgrades for the cental bank’s growth and inflation forecasts — and remarks from President Mario Draghi.

“Global markets are turning downwards once again today, as fears over the global growth picture continues to drag stocks lower,” said IG analyst Joshua Mahony.

“With a lack of any major data from the UK or US, the ECB will have the full attention of global markets today, as Mario Draghi responds to a period of continued weakness from the eurozone,” Mahony added.

“Amid falling growth, and below target inflation, there is little reason for the bank to raise rates any time soon.”

Earlier Thursday, Asian markets stuttered with no fresh news on the China-US trade front and as investors turn their attention to further signs of weakness in the global economy.

A worldwide growth forecast downgrade from the Organisation for Economic Cooperation and Development (OECD) and weaker-than-expected private US jobs data helped send Wall Street lower and dragged on sentiment.

And observers said a surge in the US trade deficit could also spur US President Donald Trump to ratchet up his protectionist agenda, even as he zeroes in on an agreement with China.

– Brexit deal elusive – 

On currency markets, the pound struggled as British and EU officials said talks to hammer out a deal that Prime Minister Theresa May could push through Britain’s parliament had been “difficult”, with a solution still elusive.

With just three weeks before the divorce day, the customs border in Northern Ireland remains a major sticking point and there continue to be worries that Britain will crash out of the EU without an agreement in place, which could batter the economy.

However, traders take some comfort in the fact that if MPs reject whatever deal is presented to them in a vote next week, they will vote in the following days on whether to leave with no deal or delay Brexit.

– Key figures at 1200 GMT – 

London – FTSE 100: DOWN 0.4 percent at 7,165.87 points

Frankfurt – DAX 30: DOWN 0.5 percent at 11,531.28

Paris – CAC 40: DOWN 0.4 percent at 5,268.26

EURO STOXX 50: DOWN 0.3 percent at 3,314.26

Tokyo – Nikkei 225: DOWN 0.7 percent at 21,456.01 (close)

Hong Kong – Hang Seng: DOWN 0.9 percent at 28,779.45 (close)

Shanghai – Composite: UP 0.1 percent at 3,106.42 (close)

New York – Dow: DOWN 0.5 percent at 25,673.46 (close)

Pound/dollar: DOWN at $1.3138 from $1.3170 at 2200 GMT

Euro/pound: UP at 86.08 pence from 85.84 pence

Euro/dollar: UP at $1.1309 from $1.1307

Dollar/yen: DOWN at 111.70 yen from 111.77 yen 

Oil – Brent Crude: UP 90 cents at $66.89 per barrel

Oil – West Texas Intermediate: UP 58 cents at $56.80

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