European stocks fall amid caution about US interest

European stocks fell on Tuesday as investors became cautious ahead of a speech by Federal Reserve Chairman Jerome Powell after two US central bank monetary policy makers expected more interest rate hikes.

According to “Reuters”, the Stoxx 600 index of European shares fell 0.7 percent by 0811 GMT, after hitting its highest level in eight months in the last session.

Investors focused on a speech Powell is scheduled to deliver later in the day after two members of the US Central Bank’s Monetary Policy Committee expressed their expectation that the bank will have to raise interest rates, currently at 4.25-4.5%, to a range of 5-5.25% to rein in inflation.

Technology stocks, which are affected by interest rate movements, fell 1 percent, while Novo Nordisk and Novartis Pharmaceuticals fell more than 1.5 percent each, affecting the Stoxx index.

Mining stocks fell 1 percent on lower copper prices, while investors assessed demand risks amid fears of further rate hikes in the United States.

Britain’s FTSE 100 index fell 0.4 percent.