LONDON, Feb 11 (CNBC): European markets pulled back on Friday after a hotter-than-expected US inflation print and hawkish remarks from a Federal Reserve official cemented expectations of more aggressive interest rate hikes.
The pan-European Stoxx 600 fell 0.7per cent by early afternoon, with banks shedding 1.4per cent to lead losses as almost all sectors and major bourses slid into negative territory. Autos bucked the downward trend to add 1.4per cent.
US inflation came in at an annual 7.5per cent in January, fresh data revealed on Thursday, far ahead of expectations and marking the highest year-on-year rise in consumer prices since 1982.
Risk sentiment was then further dampened when St. Louis Fed President James Bullard, a member of the Fed's rate-setting committee, acknowledged that the reading had rendered him "dramatically" more hawkish. Bullard said he's now hoping for a full percentage point of interest rate rises in the first half of the year.
Earnings reports continue to drive individual share price movement in Europe. Swedish engineering company Sweco climbed 8.7per cent to lead the Stoxx 600 after its fourth-quarter earnings.
British food and beverage ingredients company Tate & Lyle jumped 7.8per cent after posting strong quarterly results.
At the bottom of the European blue chip index, Spanish utilities firm Naturgy Energy plunged 10per cent after announcing a plan to split the company into two.
Shares in Asia-Pacific were mostly lower on Friday, with the exception of Japan's Nikkei 225 and Topix indexes, while US futures pointed lower in pre-market trade, indicating another rocky session on Wall Street after Thursday's sell-off.
On the data front, the British economy grew 7.5per cent in 2021, official figures revealed Friday, rebounding from its historic 9.4per cent plunge in 2020 when pandemic restrictions stifled activity.
© 2024 - All Rights with The Financial Express
