European stocks opened flat amid fears of raising interest rates

European stocks opened stable today, Tuesday, amid fears that major central banks would raise interest rates to counter slow economic growth, offsetting support from defensive healthcare stocks.

According to Reuters, the European Stoxx 600 index settled at 459.78 points. The index had fallen in the previous session due to data that indicated weak activity in US companies and prompted investors to take profits after stocks recovered last week.

Statements by Christine Lagarde, President of the European Central Bank, and Joachim Nagel, President of the German Central Bank, on Monday, reinforced the market’s expectations that the Federal Reserve (the US central bank) would raise interest rates this month.

The comments come even as US financial markets are betting on the Federal Reserve’s suspension of a series of interest rate hikes this month.

Interest-sensitive technology stocks fell 0.8 percent, leading sectoral losses for the day, while health care stocks rose 0.6 percent.