European stocks down as concern over interest rates returned

European stocks fell today, Friday, and are close to ending a three-day winning streak, as investors assess the prospects for a prolonged continuation of monetary policy tightening globally, as well as sentiment affected by bleak expectations on the part of German sportswear Adidas.

According to “Reuters”, the Stoxx 600 index of European shares fell 0.6 percent by 0815 GMT, after touching the highest level in a year on Thursday, following a series of corporate earnings data that stimulated risk appetite.

Retail and basic resources stocks fell nearly 1 percent each, the worst performers among sector indices.

Swedish defense equipment manufacturer SABB jumped 8.8 percent to top the STOXX 600 index gains on the back of higher operating profits in the fourth quarter. The company also expected operating revenues to grow by 15 percent in 2023 and operating income to increase at a faster rate than revenues.

Adidas shares fell 9.4 percent, heading to record the largest one-day decline in 11 months, on the back of expectations of a large decline of nearly ten percent in 2023 sales, which also led to a decline in the shares of its peer, Puma, by two percent.

British Standard Chartered fell 5.7 percent and is on track to record its largest one-day drop in six months after First Abu Dhabi Bank, the largest bank in the UAE, announced that it was not currently evaluating a takeover offer.