European equities are heading towards the biggest weekly losses of the past two months

European stocks fell on Friday, set for their worst week in two months, after a sharp drop on Wall Street, as investors feared a larger hike in interest rates would be needed to curb high inflation.

The pan-European Stoxx 600 index fell 0.6%, with the travel, leisure and tech sectors the biggest losers.

Conversely, oil and gas stocks were the only ones to gain with crude oil prices above $ 110 a barrel.

US stocks closed on Thursday in steep decline as investor morale fell amid fears that this week’s interest rate hike would not be enough to curb the rise in inflation.

Earnings also negatively impacted sentiment in Europe, as Adidas shares fell 4% as the company lowered its 2022 sales forecast due to ongoing pandemic closures in China to damage the German sportswear company.

ING Group, the largest Dutch bank, lost 2.2%, posting a worse-than-expected quarterly net profit, including an increase in bad loan provisions due to exposures in Russia and Ukraine.

Danish shares in Ambo Medical Devices fell 13.9% after announcing pessimistic full-year earnings forecasts due to supply chain problems and hospital staff shortages.

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