European stock markets mid session: stocks traded lower ahead the ECB’s interest rate decision

Stock indices traded lower ahead of the release of the European Central Bank's (ECB) interest rate decision. Analysts expect the central bank to keep its interest rate unchanged.

The ECB cut its interest rate to 0.00% from 0.05% (this decision was not expected by market participants) and deposit rate to -0.4% from -0.3% at its meeting in March. The ECB also expanded its monthly purchases to €80 billion from €60 billion, to take effect in April. The central bank decided to launch further four targeted longer-term refinancing operations (LTRO).

The Office for National Statistics released its retail sales data for the U.K. on Thursday. Retail sales in the U.K. fell 1.3% in March, missing expectations for a 0.1% drop, after a 0.5% decline in February. February's figure was revised down from a 0.4% decrease.

The decline was driven by a weak demand in all categories. Food sales were down 1.9% in March, while non-food store sales decreased 1.5%.

On a yearly basis, retail sales in the U.K. climbed 2.7% in March, missing forecasts of a 4.4% increase, after a 3.6% rise in February. February's figure was revised down from a 3.8% gain.

The ONS also released public sector net borrowing for the U.K. Public sector net borrowing excluding public sector banks declined to £74.0 billion in the fiscal year 2015/16 ending March 2016 from £91.7 billion in the previous fiscal year. It is equivalent to 3.9% of GDP.

The government forecasted £72.0 billion for the fiscal year 2015/16.

The debt-to-gross domestic product ratio rose to 83.5% in the fiscal year 2015/16 from 83.3% in the previous fiscal year.

Public sector net borrowing excluding public sector banks declined to £4.6 billion in March from £7.4 billion in March a year ago.

Current figures:

Name Price Change Change %

FTSE 100 6,377.55 -32.71 -0.51 %

DAX 10,412.6 -8.69 -0.08 %

CAC 40 4,578.35 -13.57 -0.30 %