European stock markets closed with mixed results on Thursday, with the Stoxx Europe 600 inching up by 0.13%. Meanwhile, Germany's DAX 40 saw a more significant climb of 1.59%. In contrast, the FTSE 100 in London experienced a decline of 0.83%, while France's CAC 40 managed a modest rise of 0.29%. The Swiss Market Index, however, fell by 0.64%, reflecting the ongoing economic uncertainty and varying regional performances. The European Central Bank's Governing Council has made a pivotal decision to lower its three key interest rates by 25 basis points.
This move is based on a carefully assessed view of the updated inflation outlook, underlying inflation dynamics, and the overall strength of monetary policy transmission within the region. Despite this proactive approach, the bank acknowledged that "the economy faces continued challenges." As a direct result, growth projections have been revised downwards, now forecasting a growth rate of 0.9% for 2025, 1.2% for 2026, and 1.3% for 2027.
These adjustments primarily stem from lower expected exports coupled with a persistent weakness in investment. The HCOB Eurozone Construction PMI Total Activity Index has also reported a concerning development, dropping to 42.7 in February from a previous reading of 45.4 in January. This notable decline signals a "steep drop in construction output," marking the sharpest since the past three months, as reported by S&P Global, the agency responsible for compiling the index. In the UK, the situation mirrors that of the Eurozone, with the S&P Global UK Construction Purchasing Managers' Index falling to 44.6 in February, down from 48.1 in January.
This latest figure represents the lowest point in almost five years and reflects a troubling trend as it drops below the critical 50 threshold that differentiates expansion from contraction for the second consecutive month. In the corporate sphere, Rio Tinto has successfully completed the acquisition of Arcadium Lithium for a substantial $6.7 billion.
Following this acquisition, Arcadium Lithium will be rebranded as Rio Tinto Lithium, and consequently, its shares will be delisted from both the New York Stock Exchange and the Australian Securities Exchange. Furthermore, Rio Tinto is poised to invest a significant $1.8 billion into the development of the Brockman Syncline 1 mine extension project located in Western Australia.
This ambitious project is projected to process up to 34 million metric tons of iron ore annually and is anticipated to create around 600 job opportunities once operational. In a noteworthy move within the logistics sector, shares of Deutsche Post surged by an impressive 14% in Frankfurt. This rally followed the announcement that the German postal services provider would be cutting 8,000 jobs as part of a strategic effort to reduce operational costs. Meanwhile, Banco BBVA Argentina disclosed its Q4 earnings on Wednesday, reporting 299.417 Argentine pesos per American Depository Share, which translates to approximately $0.28, a noticeable increase from the 240.966 pesos reported a year earlier.
This uptick reflects the bank's resilience amid fluctuating market conditions..