European shares fell for a seventh consecutive session on Thursday, on track for their longest losing streak in more than five years, weighed down by twin concerns of a slowing European economy and elevated US interest rates.

The pan-European STOXX 600 index fell 0.4% by 0714 GMT, hitting a one-week low.

The seven-day losing streak for the index was last seen in February 2018.

Rate-sensitive tech shares dropped nearly 1% as US Treasury yields surged after stronger-than-expected services sector data on Wednesday fuelled concerns that sticky inflation meant interest rates will stay higher for longer.

Monetary policy decisions from the European Central Bank and the US Federal Reserve are due later this month.

In fresh evidence of slowing momentum in Europe’s largest economy, data showed German industrial production fell by slightly more than expected in July.

A bright spot, shares of Direct Line Insurance Group surged 14.1% after the British motor and home insurer forecast better operating profit in 2024.