European shares open sharply lower as US Fed hints at interest ‎rate peak

European shares began trading on Thursday sharply lower after the Federal Reserve (the US central bank) dashed any hopes of easing monetary tightening policies aimed at curbing inflation, and even hinted at smaller interest rate increases for a longer period.

According to “Reuters”, the European Stoxx 600 index fell 0.9 percent by 0810 GMT, with interest-rate-sensitive European technology shares falling 1.5 percent.

Most of the main European sector indices declined, but the banking sector index rose by about 0.1 percent.

The Fed raised its benchmark interest rate by 75 basis points for the fourth time in a row on Wednesday, and Chairman Jerome Powell announced that future increases may be smaller, and said the “final level” of the key interest rate is likely to be higher than previously expected. ‎

Shares of travel and entertainment companies in Europe fell 2.1 percent, and Flutter Entertainment led the losses after Australia’s Financial Crimes Control Authority ordered an audit of Sportscept, the country’s largest online betting company operated by Flutter.