European stocks slide as traders brace for rate hikes

div classBodysc17zpet90 cdBBJodivpReuters – European shares wilted as traders ramped up interest rate hike bets following hawkish comments from central bank officials, while German software giant SAP and French luxury goods company Kering fell after reporting firstquarter results.

pThe panEuropean STOXX 600 lost 0.8, eyeing its worst day in more than two weeks, and was set to end the week lower.pdivdivdiv classBodysc17zpet90 cdBBJodiv

pU.S. Federal Reserve Chairman Jerome Powell said on Thursday a 50basispoint rate increase “will be on the table” when the bank meets on May 34.

pThat followed comments from European Central Bank vice president Luis de Guindos who backed an end to bond purchases in July. Money markets are now pricing in 80 basis points of ECB rate hikes by December.

All European subsectors were in the red, with retail and tech stocks leading losses.

Kering fell 5.3 after releasing downbeat sales at its crown jewel Gucci, hurt by lockdowns in China.

SAP slipped 2.9 after flagging a revenue hit of 300 million euros 325.26 million because of its exit from Russia.

France‘s CAC 40 fell 1.1 ahead of Sunday’s presidential runoff vote.p

Reporting by Anisha Sircar in Bengaluru Editing by Shounak Dasguptap

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