By Sruthi Shankar
(Reuters) -European stocks slipped on Friday after U.S. inflation data fuelled concerns about interest rates staying higher for longer, while weak inflation data from China added to jitters about the global economy.
The pan-European STOXX 600 index fell 0.5%, with healthcare and financial services sectors leading losses.
Wall Street’s main indexes closed lower on Thursday after data showed consumer prices rose more than anticipated in September, boosting chances of the Federal Reserve delivering another rate hike this year.
Asian stocks also slid as data from China pointed to persistent deflationary pressures in the world’s second-largest economy.
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Volatility has gripped equity markets in recent weeks as U.S. bond yields surged to multi-year highs, but stocks have largely remained supported on hopes that the major central banks are near the end of their monetary tightening cycle.
Despite Friday’s declines, the STOXX 600 is set for its first weekly gains in four.
“The next real question is about interest rate cuts and the timing of it.
We tend to be a little bit more hawkish,” said Bimal Patel, senior fund manager for global equities at Canada Life Asset Management.
“The market is pricing in a series of cuts in the second half of next year.
If the U.S. economy remains pretty strong, those cuts may not materialise.”
Investors will focus on U.S. bank earnings later in the day for clues on how Wall Street lenders are faring amid concerns around elevated inflation, slowing economic growth and a bond market rout.
Miners and oil & gas companies were among the few gainers in Europe as prices of commodities, including oil and copper, rose.
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Among individual stock moves, Sartorius AG tumbled 10.8% after the Franco-German lab supplies maker lowered its full-year forecast for sales and adjusted earnings margin on the back of lower volume expectations and product mix effects.
Swiss Re climbed 1.4% after Berenberg upgraded the reinsurer’s stock to “buy” from “hold”.
St.
James’s Place fell 14.3% following media reports the British wealth manager is under pressure from regulators to overhaul its client fee structure to comply with UK’s new Consumer Duty rules.
British American Tobacco dropped 2.8% after the U.S.
health regulator blocked the sale of six flavours of main vape brand, Vuse Alto, including the menthol flavour that makes up a large portion of its sales.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Sonia Cheema and Saumyadeb Chakrabarty)
