European shares open lower as tech stocks slide on hawkish Fed

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, September 21, 2022. REUTERS/Staff

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Sept 22 (Reuters) – European shares opened lower on Thursday, with tech stocks leading the declines, after the US Federal Reserve delivered another jumbo-sized interest rate hike and signaled more increases in its fight against stubbornly high inflation.

The pan-European STOXX 600 index (.STOXX) shed 1.5% by 0707 GMT, while Germany’s DAX index (.GDAXI) lost 1.8%. Rate-sensitive European tech stocks (.SX8P) tumbled 2.6%.

The Fed raised interest rates on Wednesday by 75 basis points for the third straight time and sees its target policy rate at its highest level since 2008, rising to the 4.25%-4.50% range by the end of this year. read more:

Meanwhile, European Central Bank board member Isabel Schnabel said interest rates need to keep going up as inflation is still far too high, even as the euro zone faces an economic downturn. read more:

London’s FTSE 100 index (.FTSE) dropped 1.0% ahead of what will likely be the Bank of England’s second major interest rate hike later in the day. read more:

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Reporting by Shreyashi Sanyal in Bengaluru; Editing by Saumyadeb Chakrabarty

Our Standards: The Thomson Reuters Trust Principles.


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