By Sagarika Jaisinghani and Ambar Warrick
(Reuters) – Losses in bank and energy stocks were exacerbated by hawkish statements by a Federal Reserve official on Friday, prompting the STOXX 600 index to halt a four-week streak of gains amid fears of monetary tightening in the United States.
The FTSEurofirst 300 index fell 1.61% to 1,745 points while the pan-European STOXX 600 index lost 1.58% to 452 points on its worst day in five weeks as bank and energy stocks led the decline .
The STOXX 600 registered a 1.2% retreat this week.
The banking sector, which normally does well when interest rates are high, tumbled nearly 3% as fears about a possible reduction in liquidity prompted investors to realize recent gains.
St. Louis Federal Reserve Chairman James Bullard said the Fed could begin tightening interest rates as early as the end of 2022, calling the move a natural response to economic growth and, in particular, inflation, which has been moving. faster than expected with the reopening of the economy.
His statements come after the Fed signaled a “hawkish” lean this week, which hurt risk-oriented markets.
In LONDON, the Financial Times index retreated 1.90%, to 7,017 points.
In FRANKFURT, the DAX index fell 1.78% to 15,448 points.
In PARIS, the CAC-40 index lost 1.46% to 6,569 points.
In MILAN, the Ftse/Mib index had a devaluation of 1.93%, to 25,218 points.
In MADRID, the Ibex-35 index dropped by 1.80% to 9,030 points.
In LISBON, the PSI20 index devalued 2.28%, to 5,063 points.
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