European stocks and Wall Street futures trended lower on Thursday, as investors concerned about inflation and China’s economic slowdown took advantage of an earnings season rally to bank some gains.
The Stoxx Europe 600 index opened 0.5 per cent lower, but remained less than 2 per cent below its mid-August all-time high. This came after Wall Street’s S&P 500 closed Wednesday’s session on the cusp of a record high after consumer goods groups Nestlé and Procter & Gamble told investors they could raise prices to counteract higher costs.
“The S&P getting back to all-time highs can make investors keen to pull back on positions as it provides a chance to re-evaluate risk appetites,” said Sunil Krishnan, head of multi-asset funds at Aviva Investors.