European stocks slip as post-Fed rally fades, retailers drag
2022.06.16 10:42
The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, June 15, 2022. REUTERS/Staff
(Reuters) – European stocks slipped on Thursday after the U.S. Federal Reserve’s decision to raise interest rates aggressively fuelled concerns about a potential recession at a time when global economies are facing sky-high inflation.
The continent-wide STOXX 600 index dipped 0.4% by 0710 GMT, even though European stock futures recovered overnight after Wall Street rallied to close higher. [.N]
The retail sector fell the most and was down 2.1% as British online fashion retailer ASOS (LON:ASOS) slumped 14.3% after warning inflationary pressures were affecting shopping behaviour.
German rival Zalando dropped 7%.
The Fed on Wednesday raised its target interest rate by 75 basis points, its biggest rate hike since 1994, and projected a slowing economy and rising unemployment in the months to come.
UK’s blue-chip FTSE 100 fell 0.5% ahead of a Bank of England policy meeting expected to result in another interest rate hike.
Swiss drugmaker Roche slipped 0.6% after it said its Alzheimer’s medicine crenezumab did not slow or prevent cognitive decline in people.
