French stocks declined on Thursday after Federal Reserve Chair Jerome Powell said a soft landing for the economy is going to be very challenging and a recession is possible.
Adding to growth worries, France's business activity data for June came in weaker than forecast.
The June composite PMI flash figure which comprises the services and manufacturing sectors dropped to 52.8 points from 57.0 points in May, according to a S&P Global survey.
The benchmark CAC 40 fell 68 points, or 1.2 percent, to 5,848 after closing 0.8 percent lower in the previous session.
Air Liquide shares tumbled 2.2 percent. The company which supplies industrial gases and services to various industries and Germany's Siemens Energy have announced a joint venture for the series production of industrial scale renewable hydrogen electrolyzers in Europe.