• The pan-European Stoxx 600 ended the session 0.4% lower, with most sectors and major bourses trading in the red.
• Retailer H&M plunged 13% after it reported a smaller-than-expected rise in second-quarter profits and cast doubt over its full-year profit margin target.
• Sweden's Riksbank kept borrowing costs unchanged Thursday but signalled that it expects to resume easing again, with up to three cuts in the second half of the year.

LONDON — European stocks closed lower Thursday as investors faced global inflation worries.

The pan-European Stoxx 600 ended the session 0.4% lower, with most sectors and major bourses trading in the red. Media stocks rose 0.45%, while retail shed 1.86%.

H&M plunged 13% after it reported a smaller-than-expected rise in second-quarter profits and cast doubt over its full-year profit margin target.

Sweden's Riksbank kept borrowing costs unchanged Thursday but signalled that it expects to resume easing again, with up to three cuts in the second half of the year. Turkey's central bank also left interest rates unchanged at 50.00%.

Global market attention is shifting toward fresh U.S. inflation data on Friday, with May's personal consumption expenditures price index, the U.S. Federal Reserve's preferred inflation gauge, due to be released. Investors hope the report will show easing pricing pressures that could cement the likelihood the Fed will lower interest rates later this year.

Data releases in Europe Thursday included Italy's latest consumer and business confidence numbers, which showed a monthly improvement, and Spanish retail sales, which declined by 0.6%.

Asia-Pacific markets traded lower overnight as the Japanese yen weakened to a near 38-year low late Wednesday, hitting 160.82 against the U.S. dollar, according to FactSet data.

U.S. stocks were flat in morning deals.