European equities drop on fears of inflation, interest rate hikes

European equities tumbled today as minutes from the latest European Central Bank meeting raised concerns about the state of euro zone inflation and tightening monetary policy to tame it, while falling retail sales heightened concerns. for an impending economic slowdown.
The pan-European Stoxx 600 index rebounded from early gains made in the session and fell 0.6%, posting losses for the second consecutive session.
European exchanges saw a boost earlier in the week on hopes that the US Federal Reserve and other central banks will switch to a less aggressive approach.
However, the minutes of the ECB meeting from 7 to 8 September showed that policymakers are concerned that inflation may remain at very high levels for a long time, necessitating aggressive monetary tightening, even if it leads to a slowdown in growth. .
The European Central Bank raised interest rates by 75 basis points in its latest meeting and promised further hikes even as bloc nations grapple with rising prices and a cost-of-living crisis.
Most of the Stoxx index subsectors were in the red, led by the mining and utilities indices down nearly 2%.
The FTSE 100 index gave up on gains made at the start of the session, falling 0.8 percent, while the domestic-focused midsize company index rose 0.4 percent.
Shares in Shell fell 2.8% after the oil giant said its third-quarter profit will decline due to a sharp decline in refining margins and weak revenues from natural gas trading.

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