Investing.com - European stock markets declined after the open on Thursday, tracking losses on Asian equity markets, as appetite for riskier assets weakened amid worries over sluggish global growth.
During European morning trade, the EURO STOXX 50 shed 30 points, or 0.93%, France’s CAC 40 edged down 38 points, or 0.83%, Germany’s DAX 30 lost 58 points, or 0.56%, while London's FTSE 100 dropped 58 points, or 0.92%.
Stock markets in Asia came under pressure as weak economic data from China and Japan raised concerns over the health of Asia's two biggest economies.
The Shanghai Composite dropped 1.5% after weak China inflation data added to speculation policymakers in Beijing will have to introduce further stimulus measures to boost growth.
Government data showed that Chinese producer prices fell by a more-than-expected 5.9% in August, the 42nd straight monthly decline and the worst reading since October 2009.
Consumer prices rose 2.0% last month, above expectations for 1.8% and up from 1.6% in July. Non-food inflation remained subdued at 1.1%, unchanged from a month earlier.
Meanwhile, Japan's blue-chip Nikkei stock index fell 2.5% after a key gauge of capital spending fell unexpectedly in July, fueling concerns over the health of the economy.
Global financial markets have been roiled in recent weeks by fears that China's slowdown could drag on already sluggish global growth.
Later in the session, the Bank of England will release its rate decision and minutes of its Monetary Policy Committee meeting at 12:00PM London time, or 7:00AM ET.
Last month, the Monetary Policy Committee voted 8-1 to keep rates on hold at a record low 0.5%. Most market players expect the BOE to begin slowly raising interest rates in mid-2016.
Elsewhere, across the Atlantic, U.S. equity markets pointed to a moderately higher open, as markets attempt to recover from a brutal selloff suffered during the previous session.
The Dow futures gained 25 points, or 0.15%, S&P 500 futures tacked on 4 points, or 0.15%, while the Nasdaq 100 futures added 7 points, or 0.15%.
The U.S. is set to release data on initial jobless claims and import prices later Thursday. Data on Wednesday showed that the number of job openings in the U.S. rose to the highest level on record in July.
The report boosted optimism over the health of the labor market and supported the case for a rate hike later this month. The timing of a U.S. rate hike has been a constant source of debate in the markets in recent months.