European shares fall as banks hit 3-month low on inflation fears

Key facts

• European shares closed lower on Thursday.
• Banks reached a three-month low.
• Rising oil prices and a bond selloff fueled inflation fears.
• The CAC 40 index hit a more than six-month low.
• Investor worries about France's budget deficit contributed to the CAC 40's decline.

European shares closed lower on Thursday, with banks reaching a three-month low, as rising oil prices and a bond selloff fueled inflation fears and concerns over economic growth. France's benchmark CAC 40 index also hit a more than six-month low amid investor worries about the country's budget deficit.