European stocks closed slightly lower on Thursday as sharp losses among luxury retailers and broader macroeconomic concerns weighed on markets. The Euro STOXX 50 fell 0.2% to 6,432, while the STOXX Europe 600 edged below flat at 651. Luxury companies led declines after China, the world's top luxury consumer, reported July retail sales growth below expectations. In the US, the outlook for discretionary spending was pressured by higher Treasury yields, a weaker dollar and rising inflation risks. LVMH and Adidas each fell 3%, while Hermes dropped 2%. Industrial stocks also weakened, with Airbus, Safran and Rheinmetall down about 2%. Intesa Sanpaolo gained 0.4% after Banca MPS approved bids for BPM and Banca Generali in an effort to fend off BPM's takeover attempt.