European Stocks Decline as Investors Anticipate Tighter US Monetary Policy

London: European stocks opened lower on Thursday as investors awaited a possible interest rate hike by the US Federal Reserve, following expectations of further tightening by policymakers. A drop in oil prices helped ease inflation concerns. According to Yemen News Agency, the pan-European STOXX 600 index fell 0.15 percent to 638.35 points. The Federal Reserve kept interest rates unchanged on Wednesday, but persistent inflationary pressures led nine policymakers to predict one rate hike this year. Oil prices continued their decline on Thursday, with Brent crude nearing $77 a barrel, following a tentative agreement between the United States and Iran that boosted expectations of increased oil supplies. In the markets, shares of German airline Lufthansa rose 0.9 percent, and Air France shares climbed 2.7 percent, while technology stocks gained 0.6 percent, boosted by a rise in chipmakers' shares. Generali shares also rose 2.6 percent following reports of UniCredit's efforts to increase its stake in the compa ny, while shares of British supermarket chain Tesco fell 3.3 percent after sales growth slowed. Edenred shares surged 13.9 percent after reports that British firm PC Partners was considering acquiring the French company.