European stocks decline as US Fed signals more rate hikes ‎

European stocks fell on Friday, pressured by rising bond yields, and statements by Federal Reserve Chairman Jerome Powell undermined investors’ hopes about interest rates reaching their peak.

According to Reuters, the European Stoxx 600 index fell 0.4% by 0810 GMT, but it is still heading to record gains for the second week.

Officials at the US Central Bank, including Powell, on Thursday expressed doubts that their fight against inflation was over, adding that they would continue to tighten monetary policy if necessary.

The markets considered these statements to be extremely strict, as they came after policymakers at the European Central Bank and the Bank of England resisted expectations of lowering interest rates.

Richemont shares fell 3% after the Swiss luxury goods group announced lower-than-expected profits, and Diageo shares fell 8% as the alcoholic beverage manufacturer expects that the original growth in operating profits will decline in the first half of its current financial year.