European Shares Slide On Fed Rate-hike Bets

stockmarkets aug16 11feb22 lt

European stocks were sharply lower on Friday amid bets for more aggressive interest rate hikes by the Federal Reserve.

After U.S. inflation rate soared to a 40-Year High of 7.5 percent in January, Federal Reserve Bank of St. Louis President James Bullard said he supports raising interest rates by a full percentage point by July 1.

The pan European Stoxx 600 fell 1.1 percent to 467.35 after closing 0.2 percent lower in the previous session.

The German DAX and the U.K.'s FTSE 100 were down around 0.9 percent each, while France's CAC 40 index fell as much as 1.3 percent.

Tech stocks lost ground, with Infineon Technologies falling 1.4 percent and ASM International tumbling 2.7 percent.

Swedish luxury car maker Volvo Cars plunged 5 percent after its fourth-quarter earning lagged forecasts.

Valve maker Spirax-Sarco lost 3 percent in London after a brokerage downgrade.

British American Tobacco rose 0.7 percent after it reported a 7 per cent rise in full-year adjusted revenue.

Tate & Lyle jumped 6.7 percent after the provider of food-and-beverage ingredients raised full-year expectations for continuing operations.

Electric utility EDF slumped 4.5 percent after cutting its estimate for its French nuclear output in 2023.

French TV group TF1 advanced 1.4 percent after reporting a rise in full-year advertising revenue and profit.

In economic releases, the U.K. economy expanded at a steady pace in the fourth quarter, the Office for National Statistics said earlier in the day.

Gross domestic product grew 1 percent sequentially, the same pace of expansion as seen in the third quarter. Economists had forecast a quarterly growth of 1.1 percent.
On a yearly basis, GDP grew 6.5 percent, slightly faster than the 6.4 percent expansion expected by economists.

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