FXstreet.com (Barcelona) -European stock markets are going through considerable declines on Thursday on profit taking after several days with gains and amid a sharp decline in commodity prices. Euro remains trading sideways off 2009 highs, while the Pound plunged on BoE King's comments.

Eurostoxx 50 Index drops 1.1% while the German DAX Index sheds 1.15% and French CAC Index declines 1.0%, two hours after the opening bell. In the UK, the FTSE Index drops 0.8%.

Basic resource stocks have plunged on Thursday's session, following a decline in oil prices, The November Nymex crude oil futures contract dropped to $68.38 per barrel as , a 59 cents decline, adding to the $2.79 drop seen on Wednesday.

On the macroeconomic front, German Ifo Business climate index rose to 91.3 in September from 90.2 in August, too short of the 92.00 expected by the markets, while the expectations Index edged up to 95.5 in September from 95.0 in August, and the current situation index rose to 87.0 in September from 86.2 in August.

Pound Plunges, Euro steady off highs

GBP/USD has dropped like a stone on early European session, amid a mix of press report's and BoE's Governor Merving King defending that Sterling weakness was helpful to re-balance UK economy. The Pound fell from 1.6385 to hit an intra-day low at 1.6200.

EUR/USD has been moving around 1.4750 after picking up from 1.4685 low during early Asian session. A the moment of writing, the Euro trades at 1.4755. EUR/GBP has rallied after King's comments jumping from 0.8990 to 0.9105. its highest level since April.

USD/JPY decline from 91.60 high on Asian session., has extended below 90.50 (September 23 low) during European session, and the pair has reached a fresh low at 90.35.