European stocks open lower ahead of ECB rate decision

By Aysu Bicer

ANKARA (AA) - European stocks opened Thursday with losses ahead of a European Central Bank rate decision and amid recession fears and rising inflation.

The bank is expected to hike policy rates by 75 basis points, and investors are focused on what ECB President Christine Lagarde will say.

The STOXX Europe 600 benchmark index fell 0.36% to 408.8 points, and Germany's DAX 40 index lost 0.38% to 13.146 points.

The UK's FTSE 100 index went down 0.29% to 7,036 points, while France's CAC 40 index was down 0.33% to 6,255 points.

Spain's IBEX 35 index stood at 7,855 points, down 0.21%, and Italy's MIB 30 index declined 0.48% to 22,282 points.

Euro/dollar parity continues to rise amid expectations that the US Federal Reserve's ultra-hawkish policies are coming to an end.

The parity rose above the 1 level for the first time on Sept, 20, and is currently at the level of 1.0060.

Sterling/dollar parity, on the other hand, tested above 1.16 for the first time since Sept. 13, up 1.4% Wednesday, and is currently trading just below this level.