European Stocks Plunge As BoE Head Signals Rate Hike

(RTTNews) - European stocks tumbled for a second day in a row Thursday, as Bank of England Governor Mark Carney said the central bank may be getting closer to raising interest rates.

Speaking at an actuaries' conference in Wales, Carney said, "With many of the conditions for the economy to normalize now met, the point at which interest rates also begin to normalize is getting closer."

Meanwhile, European Central Bank President Mario Draghi said Thursday that Euro area economy is likely to expand in the second half of this year even though the recovery seems to have lost momentum recently.

In an interview to the Lithuanian business daily Verslo Zinios, "We expect modest growth in the second half of the year and continue to expect euro area domestic demand to be supported by various factors."

Downbeat economic news from the U.S. also had investors in a cautious mood.

Data released by the Commerce Department showed orders for durable goods declined by a record 18.2 percent in August, after posting a sharp 22.5 percent increase in the preceding month.

The Euro Stoxx 50 index of eurozone bluechip stocks dropped 1.29 percent.

Around Europe, the German DAX slipped 1.57 percent and France's CAC 40 lost 1.32 percent, while the FTSE 100 of the U.K. was down about 1 percent.

Shares of Ryanair Holdings Plc were up fractionally in London. The airline raised its full-year traffic forecast and said it expects its full year net profit to be at the upper end of its previous outlook.

Cairn Energy added 1.7 percent after it agreed to sell 10 percent of its stake in the Catcher development and adjacent acreage in the UK North Sea to Dyas UK.

GlaxoSmithKline Plc was up 0.11 percent. The company said that Philip Hampton will succeed Christopher Gent as non-executive chairman with effect from 1 September 2015, or at an earlier date if released from other commitments.

Bayer AG was lower in Frankfurt. Its group firm Bayer MaterialScience and Bluesign Technologies have entered into a strategic alliance to ensure safe production processes and working conditions along the entire value chain.

Hennes & Mauritz AB was down 4.5 percent in Frankfurt after the Swedish apparel retailer said sales had slowed in September due to unusually warm weather in most markets.

Air Liquide SA was down about 2 percent. The French industrial and medical gases maker said it is further expanding its relationship with BOE Technology Group with a major contract award to supply BOE's new G8.5 Flat Panel Display Device and System Project in Chongqing, China.

Dassault Aviation lost 1.7 percent after its shareholders reportedly approved a plan that allows the French aircraft maker buyback up to 10 percent of its stock.

BP Plc shares fell 2.8 percent after a federal judge in New Orleans rejected the British oil giant's request for recouping millions of dollars of overpayments made to some claimants under the 2010 Gulf of Mexico oil spill settlement.