European Markets Extend Losses Ahead of ECB Rate Meeting

European markets retreated further on Thursday as investors digested weaker than expected German industrial production and another spate of corporate earnings ahead of the European Central Bank monetary policy meeting. Germany’s Economics Ministry said that industrial output rose a seasonally adjusted 0.3% from May to June – well below the 1.2% monthly gain projected in a Bloomberg News survey. The ECB is expected to hold interest rates steady at today’s meeting, and investors will be looking to the post-policy press conference by ECB President Mario Draghi for any comments on the euro-zone’s economy and inflation outlook. In Germany, Adidas AG lost after cutting its 2014 profit forecast, while reinsurer Munich Re fell after posting a lower than expected second-quarter profit, while. Among gainers, Nestle AG rose in Zurich on better than expected first half revenue growth. Nestle also announced its first share buyback in three years.