economy
European stocks finish lower as oil rises and investors bet on rate hikes
Shares listed in Europe opened in the green before closing Friday's session in negative territory.
TL;DR
- The pan-European Stoxx 600 index closed 1.7% lower, erasing morning gains.
- Rising oil prices and cautious central bank statements contributed to a sell-off.
- Smiths Group shares fell 9.9% after missing revenue estimates.
- UK gilt yields increased due to fears of energy-driven inflation.
- Central banks including the ECB, Bank of England, Swiss National Bank, and Riksbank held interest rates steady but signaled readiness to act against inflation.
- Investors are pricing in a high probability of rate hikes from the ECB and Bank of England later this year.
- Unilever is in talks to sell its foods business to McCormick & Company.
- J D Wetherspoon warned of potential profit shortfalls due to rising costs and consumer financial pressures.
- Talks for Thyssenkrupp to sell its steel unit to Jindal Steel are reportedly not progressing.