European stocks saw a significant decline on Thursday, impacted by a series of disappointing earnings reports, hawkish signals from the European Central Bank (ECB), and a weakening U.S. labor market. The Eurozone's STOXX 50 index fell by 0.8% to 5,976, while the broader European STOXX 600 index decreased by 1.1% to 612. As predicted, the ECB did not change its interest rates, though President Christine Lagarde played down the recent softer inflation data and the euro's strength, curbing anticipations of rate cuts later this year. Meanwhile, the Bank of England (BoE) maintained its current rates, but several members of the Monetary Policy Committee (MPC) favored reductions. Among individual stocks, Shell dropped 3.5% after falling short of profit forecasts due to lower crude oil prices. BBVA plunged 8.8% as its earnings did not meet investor expectations. Maersk saw a 3.5% decline after forecasting lower earnings in 2026, and Rheinmetall declined by 6.5% following a downward revision of its earnings guidance. On a positive note, BNP Paribas rose by 1.5% after enhancing its forecast for shareholder returns, and ArcelorMittal experienced slight gains post-reporting stronger-than-anticipated fourth-quarter profits.