2026.03.1908:51:35UTC+00European Stocks Plunge Ahead of ECB and BoE Decisions

European equities slumped on Thursday as mounting tensions in the Middle East drove energy prices higher and undermined risk sentiment ahead of key interest rate decisions from the European Central Bank and the Bank of England. The STOXX 50 fell 1.8% to 5,640, its weakest level since late November, while the broader STOXX 600 lost 1.6% to hit a three-month low of 588. The decline was led by industrials and mining stocks, as gold prices pulled back, and was exacerbated by steep losses in major financial names.

Although both the ECB and BoE are widely expected to keep rates on hold, the renewed surge in European natural gas and Brent crude prices—driven by escalating tensions involving Iran—has intensified concerns over the economic outlook. As a result, markets have moved to price in additional rate hikes later this year. Bucking the broader trend, Logitech gained 2% after announcing a $1.4 billion share buyback programme.