European Markets Slide Amid Central Bank Anticipation

Europe's STOXX 600 dropped to two-week lows, influenced by declines in energy and banking sectors, as investors prepared for central bank announcements. The index ended 0.4% lower with energy and banks leading losses. Key interest rate decisions expected from the Fed, Bank of Japan, and Bank of England.

The European stock market faced a downturn, with the STOXX 600 reaching a two-week low. Energy and bank stocks were the primary culprits, with investors cautiously awaiting pivotal central bank decisions.

The pan-European index fell 0.4%, with the oil and gas sector plunging 1.3%, hitting a 17-month low due to China's economic data impacting demand. Banks, especially in Spain, were also hit hard, with sector-wide declines of 1.8% led by Santander and Sabadell.

The U.S. Fed's imminent 25-basis-point interest rate cut suggests a cautious approach to future easing, with similar anticipation surrounding the Bank of Japan and Bank of England's upcoming announcements. Meanwhile, Britain's FTSE 100 saw a slight drop, influenced by unexpected pay growth statistics.

(With inputs from agencies.)