AGL 40.00 Decreased By ▼ -0.16 (-0.4%)
AIRLINK 129.53 Decreased By ▼ -2.20 (-1.67%)
BOP 6.68 Decreased By ▼ -0.01 (-0.15%)
CNERGY 4.63 Increased By ▲ 0.16 (3.58%)
DCL 8.94 Increased By ▲ 0.12 (1.36%)
DFML 41.69 Increased By ▲ 1.08 (2.66%)
DGKC 83.77 Decreased By ▼ -0.31 (-0.37%)
FCCL 32.77 Increased By ▲ 0.43 (1.33%)
FFBL 75.47 Increased By ▲ 6.86 (10%)
FFL 11.47 Increased By ▲ 0.12 (1.06%)
HUBC 110.55 Decreased By ▼ -1.21 (-1.08%)
HUMNL 14.56 Increased By ▲ 0.25 (1.75%)
KEL 5.39 Increased By ▲ 0.17 (3.26%)
KOSM 8.40 Decreased By ▼ -0.58 (-6.46%)
MLCF 39.79 Increased By ▲ 0.36 (0.91%)
NBP 60.29 No Change ▼ 0.00 (0%)
OGDC 199.66 Increased By ▲ 4.72 (2.42%)
PAEL 26.65 Decreased By ▼ -0.04 (-0.15%)
PIBTL 7.66 Increased By ▲ 0.18 (2.41%)
PPL 157.92 Increased By ▲ 2.15 (1.38%)
PRL 26.73 Increased By ▲ 0.05 (0.19%)
PTC 18.46 Increased By ▲ 0.16 (0.87%)
SEARL 82.44 Decreased By ▼ -0.58 (-0.7%)
TELE 8.31 Increased By ▲ 0.08 (0.97%)
TOMCL 34.51 Decreased By ▼ -0.04 (-0.12%)
TPLP 9.06 Increased By ▲ 0.25 (2.84%)
TREET 17.47 Increased By ▲ 0.77 (4.61%)
TRG 61.32 Decreased By ▼ -1.13 (-1.81%)
UNITY 27.43 Decreased By ▼ -0.01 (-0.04%)
WTL 1.38 Increased By ▲ 0.10 (7.81%)
BR100 10,407 Increased By 220 (2.16%)
BR30 31,713 Increased By 377.1 (1.2%)
KSE100 97,328 Increased By 1781.9 (1.86%)
KSE30 30,192 Increased By 614.4 (2.08%)

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.