European equities open lower after US interest rates hike

European stocks began to decline on Thursday, with tech stocks leading the decline, after the US Federal Reserve announced another large interest rate hike and signaled further hikes in its battle to contain rising inflation.

The Stoxx 600 index fell 1.5% at 0707 GMT and the German DAX fell 1.8%. European technology stocks, sensitive to interest rates, fell by 2.6%.

The Federal Reserve raised interest rates by 75 basis points yesterday for the third consecutive time and expected the target interest rate to its highest level since 2008 to rise to a range of 4.25-4.50 percent by. end of year.

Meanwhile, Isabel Schnabel, a member of the Governing Council of the European Central Bank, said interest rates should continue to rise as inflation remains very high, even as the eurozone is facing economic deflation.

The UK’s FTSE 100 Index fell 1% before what is likely to be the Bank of England’s second major rate hike this day.

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