European Stocks Fall as BoE's Rally Fades

European stocks fell on Thursday as the initial reprieve after the 

Bank of England stepped in to calm the markets seemingly faded.

The pan-European Stoxx 600 fell 1.7% in early trade, with retail 

stocks dropping 4% to lead losses as all sectors and major bourses

slid into negative territory. Sterling has stooped to record lows 

against the U.S. dollar in recent days, and slid once again on 

Thursday morning, shedding 1% against the greenback to trade at 

around $1.078. Global markets saw another volatile trading day on 

Wednesday, with stocks trading sharply lower as global markets sold 

off on economic concerns surrounding inflation and the growth outlook.

Market turmoil continued to hit the U.K., prompting the Bank of England 

to suspend the planned start of its gilt selling next week and begin 

temporarily buying long-dated bonds in order to calm the market chaos 

unleashed by the new government’s so-called “mini-budget.” That move 

calmed markets in the U.S. yesterday, and that, in turn, pacified indices in

Asia-Pacific overnight. U.S. stock futures inched lower 

in early premarket trading on Thursday, however.