European markets closed mostly lower on Thursday after the European Central Bank (ECB) decided to leave interest rates unchanged for a third consecutive meeting, as investors also digested a busy day of corporate earnings and fresh political developments across the continent.
Meanwhile, political developments in the Netherlands pointed to a razor-thin race between centrist-liberal Rob Jetten and far-right populist Geert Wilders, and French authorities announced new arrests in the high-profile Louvre crown jewels heist.
ECB keeps rates unchanged amid uncertain outlook
The European Central Bank decided to keep its key interest rates steady for a third straight session, maintaining the deposit facility at 2.00%, the main refinancing operations at 2.15%, and the marginal lending facility at 2.40%.
In its accompanying statement, the ECB highlighted that the inflation outlook remains “broadly unchanged,” supported by a robust labor market and strong private sector balance sheets.
However, it acknowledged persistent uncertainty in the global economic landscape, citing trade and geopolitical tensions.
The central bank also reiterated that its Asset Purchase Programme (APP) and Pandemic Emergency Purchase Programme (PEPP) continue to decline at a “measured and predictable pace,” as the Eurosystem ceases to reinvest principal payments from maturing securities.
Markets muted
On the markets, the rate decision drew a muted reaction.
The CAC 40 fell 0.53%, weighed down by a sharp 8.75% plunge in Stellantis shares.
The Euro Stoxx 50 edged down 0.12%, with Schneider Electric losing 3.26%. Both Germany’s DAX and the UK’s FTSE 100 closed flat.
In currency trading, the euro slipped 0.30% against the US dollar, reaching $1.15665, while the British pound fell 0.33% to $1.31510.
Dutch election: tight race between Jetten and Wilders
In the Netherlands, nearly complete election results showed a tight contest between Rob Jetten’s centrist-liberal D66 and Geert Wilders’ Freedom Party (PVV).
With 99% of votes counted, both parties were projected to win 26 seats in the 150-member parliament, according to Dutch news agency ANP.
Initial exit polls had placed Jetten slightly ahead.
As results from Amsterdam arrived late Thursday, D66 pulled ahead by more than 15,000 votes, positioning Jetten to potentially become the country’s youngest prime minister.
Despite the close race, Wilders conceded that the outcome was not as expected, noting that his party still achieved its second-best result ever.
Meanwhile, the conservative-liberal VVD and the Labour-GreenLeft alliance trailed closely behind, making coalition negotiations likely to be complex.
Jetten emphasized his goal of forming a “stable and ambitious” coalition, potentially involving the VVD, GreenLeft-Labour, and Christian Democrats.
The D66 leader’s strong debate performances and upbeat campaign tone were credited for the party’s unexpected surge, after polls earlier this year predicted just 12 seats.
French Police detain five in Louvre crown jewels heist
French authorities have detained five suspects, bringing the total suspects to seven in connection with the October 19 Louvre crown jewels robbery, in which thieves made off with treasures worth €88 million.
According to Paris public prosecutor Laure Beccuau, one suspect was identified via DNA evidence as part of the four-person team that carried out the heist.
The stolen items, including a diamond-and-emerald necklace gifted by Napoleon Bonaparte to Empress Marie Louise, remain missing.
Two of the suspects, aged 34 and 39, were charged with theft by an organized gang and criminal conspiracy after partially admitting involvement.
Beccuau reiterated her appeal for the return of the jewels, warning that the items are “unsellable” and that anyone purchasing them would face charges of concealing stolen goods.
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