AGL 40.00 No Change ▼ 0.00 (0%)
AIRLINK 132.66 Increased By ▲ 3.13 (2.42%)
BOP 6.89 Increased By ▲ 0.21 (3.14%)
CNERGY 4.57 Decreased By ▼ -0.06 (-1.3%)
DCL 8.92 Decreased By ▼ -0.02 (-0.22%)
DFML 42.75 Increased By ▲ 1.06 (2.54%)
DGKC 84.00 Increased By ▲ 0.23 (0.27%)
FCCL 32.90 Increased By ▲ 0.13 (0.4%)
FFBL 77.06 Increased By ▲ 1.59 (2.11%)
FFL 12.20 Increased By ▲ 0.73 (6.36%)
HUBC 110.01 Decreased By ▼ -0.54 (-0.49%)
HUMNL 14.40 Decreased By ▼ -0.16 (-1.1%)
KEL 5.53 Increased By ▲ 0.14 (2.6%)
KOSM 8.32 Decreased By ▼ -0.08 (-0.95%)
MLCF 39.67 Decreased By ▼ -0.12 (-0.3%)
NBP 65.50 Increased By ▲ 5.21 (8.64%)
OGDC 198.74 Decreased By ▼ -0.92 (-0.46%)
PAEL 26.00 Decreased By ▼ -0.65 (-2.44%)
PIBTL 7.62 Decreased By ▼ -0.04 (-0.52%)
PPL 159.00 Increased By ▲ 1.08 (0.68%)
PRL 26.24 Decreased By ▼ -0.49 (-1.83%)
PTC 18.35 Decreased By ▼ -0.11 (-0.6%)
SEARL 82.24 Decreased By ▼ -0.20 (-0.24%)
TELE 8.12 Decreased By ▼ -0.19 (-2.29%)
TOMCL 34.40 Decreased By ▼ -0.11 (-0.32%)
TPLP 8.98 Decreased By ▼ -0.08 (-0.88%)
TREET 16.88 Decreased By ▼ -0.59 (-3.38%)
TRG 59.49 Decreased By ▼ -1.83 (-2.98%)
UNITY 27.52 Increased By ▲ 0.09 (0.33%)
WTL 1.40 Increased By ▲ 0.02 (1.45%)
BR100 10,614 Increased By 206.9 (1.99%)
BR30 31,874 Increased By 160.5 (0.51%)
KSE100 98,972 Increased By 1644 (1.69%)
KSE30 30,784 Increased By 591.7 (1.96%)

European shares dropped sharply on Friday, after strong growth in U.S. jobs strengthened the case for the Federal Reserve to keep raising interest rates aggressively in its quest to stamp out high inflation.

The continent-wide STOXX 600 index was down 1.2%, logging a third straight session of declines.

The much-awaited non-farm payrolls data showed U.S. employers hired more workers than expected in September, while the unemployment rate dropped, fuelling bets of a fourth straight 75 basis point rate hike from the Fed next month.

“It (the data) doesn’t really change the picture at all. It just reinforces the belief that the Fed isn’t yet done tightening,” said Daniela Hathorn, market analyst at Capital.com.

“We’ve got the unemployment rate at all-time lows and inflation at all-time highs and there’s no need for the Fed to loosen monetary policy.”

The data came on the heels of minutes from the European Central Bank’s last meeting published on Thursday that had fanned fears of large interest rate hikes to contain surging inflation in the euro zone.

With Fed policymakers sticking to their hawkish rhetoric and adding to nerves around rising interest rates, investors will now watch out for September’s consumer prices report next Thursday to gauge the outlook for future policy tightening.

Still, the STOXX index posted weekly gains of nearly 1%, as expectations that major central banks may tame their aggressive policy approach had briefly boosted equities in the first few sessions of the week.

The index logged its best weekly performance in a month.

Rate-sensitive technology stocks were down 4.3% on Friday, leading declines among STOXX sectors. They were followed by real estate stocks and industrials, which fell 2.4% and 2.3%, respectively.

European chipmakers including Infineon and BE Semiconductor fell between 3% and 7% after South Korea’s Samsung Electronics Co and U.S. chipmaker AMD signalled the chip slump could be much worse than expected.

Adidas lost 5.2% after the German sporting goods maker put under review its business partnership with rapper and fashion designer Kanye West.

Renault jumped 4.9% after ODDO BHF upgraded the French carmaker’s stock.

Credit Suisse rose 5.4% after the lender said it would buy back up to 3 billion Swiss francs ($3 billion) of senior debt securities, making a show of strength as it seeks to reassure investors after a tumultuous week.

Comments

Comments are closed.