European shares fell sharply on Friday, after robust growth in the US labor market strengthened the case for the US central bank to continue to raise interest rates aggressively in search of end high inflation.
The pan-European STOXX 600 index closed down 1.18% at 391.67 points, its third consecutive session of decline.
Long-awaited job creation data outside the U.S. agriculture sector showed employers hired more workers than expected in September as the unemployment rate eased, fueling bets on a fourth straight increase of 0.75 percentage points. in interest rates from the Federal Reserve next month.
“They (the data) don’t change the picture at all. They only reinforce the belief that the Fed is not done tightening (monetary policy) yet,” said Daniela Hathorn, a market analyst at Capital.com.
Still, the STOXX 600 posted weekly gains of nearly 1% as fleeting hopes that major central banks could tame their aggressive approach to monetary policy briefly boosted equities in the early sessions of the week.
The index recorded its best weekly performance in a month.
Tech shares, which are more sensitive to interest rates, fell 4.3% on Friday and were in the bottom of the other sectors of the STOXX 600.
Real estate and industrial stocks followed, which dropped 2.4% and 2.3%, respectively.
- In London, the Financial Times index fell 0.09% to 6,991.09 points
- In Frankfurt, the DAX index fell 1.59% to 12,273.00 points
- In Paris, the CAC-40 index lost 1.17% to 5,866.94 points
- In Milan, the Ftse/Mib index had a devaluation of 1.13%, to 20,901.56 points
- In Madrid, the Ibex-35 index registered a drop of 0.99%, to 7,436.90 points
- In Lisbon, the PSI20 index depreciated by 0.97%, to 5,354.70 points
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
