European shares head for biggest weekly losses in two months

In vestors fear bigger interest rate hikes needed to tame inflation

European stocks fell on Friday, heading for its worst week in two months following a carnage on Wall Street as investors feared that bigger interest rate hikes would be needed to tame decades-high inflation.

The pan-European Stoxx 600 index declined 0.6 per cent by 0709 GMT, with travel & leisure and technology stocks falling the most. Oil & gas stocks were the sole gainers as crude prices traded above $110 a barrel.

US stocks ended Thursday sharply lower as investor sentiment cratered in the face of concerns that the Federal Reserve’s interest rate hike this week would not be enough to tame surging inflation.

Earnings also added to the downbeat mood in Europe.

Adidas dropped 4 per cent as it lowered expectations for 2022 sales as renewed Covid-related lockdowns in Greater China continue to hit the German sportswear company.

ING Groep, the largest Dutch bank, fell 2.2 per cent as it reported a worse-than-expected quarterly net income, including a surge in provisions for bad loans due to its exposure in Russia and Ukraine.

Danish medical device maker Ambu tumbled 13.9 per cent after providing a downbeat forecast for full-year earnings due to supply-chain issues and hospital labour shortages. – Reuters

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