Europe open: Shares lower as traders brace for multiple rate hikes
European shares fell sharply at the start of the week as investors eyed central bank rate decisions in the US, UK and eurozone this week, with further hikes forecast as policymakers try to quell inflation.
The pan-European Stoxx 600 index was down 0.81% at 0836 GMT with all regional bourses lower. Asian shares were mixed, with the crisis surrounding Indian conglomerate Adani continuing to batter the firm’s stock after US short-seller Hindenburg issued a report hammering its financial practices.
Interactive Investor analyst Victoria Scholar said “peak interest rates appear to be approaching as inflation levels finally start to cool”.
“This morning Spain’s January inflation rate fell by 0.3% month-on-month versus a rise of 0.2% in the previous month but its annual rate rose slightly from a 13-month low to 5.8% year-on-year.”
In equity news, shares in Philips rose after the Dutch health technology company said final-quarter revenue beat estimates and that it was axing 6,000 jobs to restore profitability.
Reporting by Frank Prenesti for Sharecast.com