European Stocks Sway Amid Corporate Results and U.S.-China Trade Tensions

European stocks saw a decline as investors responded to mixed corporate earnings and shifting dynamics in the U.S.-China trade relations. The STOXX 600 index fell 0.3%, impacted by President Trump's comments on the Federal Reserve. Corporate performances varied, with Adidas rising and Kering experiencing a significant fall.

European stocks experienced a downturn on Thursday as investors absorbed mixed corporate earnings, with the atmosphere remaining tense due to evolving U.S.-China trade relations.

The pan-European STOXX 600 index recorded a 0.3% drop by 0714 GMT. This came after a volatile week marked by U.S. President Donald Trump's critical comments about Federal Reserve Chair Jerome Powell. Despite retracting his resignation demands, the uncertainty lingered.

While the U.S. hinted at easing trade tensions with China, boosting both European and U.S. markets slightly, fears of a global recession persisted, especially after harsh tariffs were exchanged. Notably, Adidas saw a rise in shares due to positive quarterly reports, while BNP Paribas and Kering faced declines following their financial disclosures.

(With inputs from agencies.)