By Pranav Kashyap
(Reuters) -Europe's benchmark stock index lost over 1% on Thursday, led by losses in the technology sector, and was set to wipe out all gains from the previous session, mirroring the gloomy sentiment seen in Asian markets.
The pan-European STOXX 600 was down 1.1% by 0830 GMT, after rising 1.5% in the previous session.
Tech stocks weighed heavily on the index, losing 1.8%, following a decline in Asian tech stocks and an overnight 1.1% slide in the Nasdaq. [MKTS/GLOB] [.N]
The basic resources sector was down 1.5%, as copper prices were subdued due to higher inventories and a pessimistic global growth outlook. [MET/L]
Banks lost 1.3%, after Poland's second-biggest lender Pekao fell 4.4% after posting a 19% drop in its second-quarter net profit.
British banks NatWest Group and Standard Chartered (LON:STAN) lost 3% and 2% respectively as they traded without entitlement to their latest dividend payouts.
The STOXX 600 has been volatile in a tumultuous week, as investors evaluated fears of a potential U.S. recession amid lower trading volumes and an absence of clear macroeconomic signals.
German inflation data is due on Friday, where markets will get a clear picture on Europe's largest economy as it grapples with a likely recession.
Investors will also look out for the weekly U.S. initial jobless claims data later in the day.
"The U.S. jobs data may get more attention than normal.. equity markets have been meandering rather than moving with clear direction," said Paul Donovan, chief economist at UBS Global Wealth Management.
"We're going to see volatility disappear from markets entirely until after we see that first rate cut from the Federal Reserve and see exactly what they are thinking," AJ Bell's head of financial analysis, Danni Hewson, said.
Allianz (ETR:ALVG) gained 1.8% after the German insurer posted a better-than-expected rise in second-quarter net profit and said it was on track to meet its full-year target.
On the other hand, Zurich Insurance lost 2.5% despite topping profit forecasts.
Deutsche Telekom (ETR:DTEGn) was up 2% after the telecom firm reported a 7.8% increase in its second quarter core earnings, in line with analysts' consensus.
Beazley soared 13.8% after the British insurer upgraded its combined ratio forecast for 2024 after its first-half pre-tax profit nearly doubled to $728.9 million.
Entain surged 7.9% as the British gambling group raised its annual net gaming revenue and earnings forecast on Thursday, after a better-than-expected second-quarter performance.