STOCKS | European Stocks Fall for Third Straight Day as Inflation Fears Intensify

European stocks fell for a third straight day on Thursday as surging oil prices and comments from the European Central Bank heightened inflation concerns. According to Sina Finance, the Stoxx Europe 600 closed down 0.7% to its lowest level since July, with mining shares leading declines and energy stocks outperforming as Brent crude broke above $105 a barrel. France's CAC 40 fell 0.5%, erasing all of its year-to-date gains. According to Sina Finance, the European Central Bank raised rates by 25 basis points and warned that inflation risks remain. U.S. economic data also showed renewed pressure from rising energy prices, which could increase the risk of a Federal Reserve rate hike next week. According to Sina Finance, swap markets were pricing in a 69% chance of a Fed rate increase. JPMorgan Private Bank macro investment strategist Patrick Ernst said policymakers made it clear that energy-driven inflation risks remain highly significant and have opened the door to further monetary tightening. He added that one rate hike is not the ceiling. Associated British Foods shares fell 7.9% after the company lowered profit forecasts for two major divisions. Fevertree Drinks Plc shares dropped 6.0% after first-half profit missed expectations.