Europe open: Stocks fall on fears bigger rate hikes needed

European stocks fell at the open on Friday as fears of spiralling inflation and bigger interest rate rises dampened sentiment.

The pan-European Stoxx 600 index was down 0.6% in early deals. Oil and gas stocks bucked the trend as crude prices traded above $110 a barrel.

The Dow Jones Industrial Average plummeted more than 1,000 points and the tech-heavy Nasdaq fell almost 5% overnight, wiping out gains from Wednesday as investors fretted that the Federal Reserve's interest rate rise this week would not be enough to combat raging inflation.

Attention was also turning to the weekly US non-farm payrolls report later in the day.

In equity news, shares in German sports gear maker Adidas fell after it lowered expectations for 2022 sales as renewed Covid-related lockdowns in Greater China continue to hit trading.

Dutch bank ING fell 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 slumped 13.9% after cutting annual earnings guidance due to supply-chain issues and hospital labour shortages.

Norwegian renewable energy company Scatec plunged 15% as the company said first-quarter results were hit by Russia’s war in Ukraine, the broader geopolitical uncertainty and seasonality in the Philippines.