European shares head towards weekly loss, with central banks ‎keep tightening monetary policy

European stocks fell today, Friday, and are heading for a weekly loss, after major central banks pledged to raise interest rates further to counter inflation, which raised concerns about a global economic slowdown next year.

According to “Reuters”, the European Stoxx 600 index fell 0.2 percent to a new low, the lowest in a month, recording 427.96 points by 0813 GMT, and is expected to incur a weekly loss of 2.4 percent.

The index witnessed the largest one-day decline since May in the previous session, after the European Central Bank joined the Federal Reserve (the US central bank) in saying that monetary policy tightening will continue despite the risks that this poses to the economy.

Telecom and retail stocks led losses on Friday among the major sectors listed on the STOXX 600. Banking stocks, which are sensitive to economic prospects, rose 0.1 percent after falling sharply in the past week.