European stocks fell nearly 1 percent on Thursday, as growing fears of an economic slowdown and further hikes in global interest rates dented risk appetite, along with the impact of an escalating trade battle between China and the United States.
The European Stoxx 600 index fell 0.8% by 0717 GMT, led by losses in the construction and raw materials index, which increased by more than 1%.
Minutes of the Federal Reserve's meeting released on Wednesday showed that the US central bank agreed to keep interest rates unchanged at its June meeting to buy time and assess the need for further rate hikes, even as the vast majority expects it will eventually need more monetary tightening. .
Meanwhile, investors are closely watching US Treasury Secretary Janet Yellen's maiden visit to Beijing on Thursday, as she is likely to focus on recalibrating relations between the world's two largest economies after tensions sparked by Beijing's new restrictions on exports of some minerals.
Orders in the German industrial sector increased by much more than expected in May, supported by large orders for ships, spacecraft and military vehicles.
Investors will be closely watching euro zone retail sales data due at 0900 GMT, and the figures are expected to show an increase of 0.2 in May compared to the previous month, which did not witness growth.
The largest loser on the index was Embriser, down 0.8 percent, after the Swedish video game group raised 2 billion crowns ($182 million) in a share issue aimed at institutional investors.
