AIRLINK 59.68 Decreased By ▼ -0.17 (-0.28%)
BOP 6.31 Increased By ▲ 0.01 (0.16%)
CNERGY 4.35 Decreased By ▼ -0.03 (-0.68%)
DFML 15.80 Decreased By ▼ -0.17 (-1.06%)
DGKC 69.85 Decreased By ▼ -1.85 (-2.58%)
FCCL 18.28 Decreased By ▼ -0.18 (-0.98%)
FFBL 26.85 Increased By ▲ 0.55 (2.09%)
FFL 9.30 Increased By ▲ 0.10 (1.09%)
GGL 10.25 Decreased By ▼ -0.07 (-0.68%)
HBL 116.25 Increased By ▲ 1.75 (1.53%)
HUBC 114.44 Increased By ▲ 1.74 (1.54%)
HUMNL 6.79 Increased By ▲ 0.14 (2.11%)
KEL 5.00 Increased By ▲ 0.17 (3.52%)
KOSM 4.71 Increased By ▲ 0.03 (0.64%)
MLCF 38.50 Decreased By ▼ -0.49 (-1.26%)
OGDC 126.26 Increased By ▲ 2.86 (2.32%)
PAEL 21.72 Decreased By ▼ -0.28 (-1.27%)
PIAA 10.95 Decreased By ▼ -0.05 (-0.45%)
PIBTL 6.05 Increased By ▲ 0.03 (0.5%)
PPL 112.85 Increased By ▲ 4.45 (4.11%)
PRL 28.24 Increased By ▲ 0.04 (0.14%)
PTC 11.13 Increased By ▲ 0.06 (0.54%)
SEARL 52.00 Increased By ▲ 0.55 (1.07%)
SNGP 68.00 No Change ▼ 0.00 (0%)
SSGC 11.45 Decreased By ▼ -0.15 (-1.29%)
TELE 7.96 Decreased By ▼ -0.11 (-1.36%)
TPLP 11.60 Decreased By ▼ -0.10 (-0.85%)
TRG 72.94 Decreased By ▼ -2.77 (-3.66%)
UNITY 23.65 Increased By ▲ 0.90 (3.96%)
WTL 1.29 Increased By ▲ 0.01 (0.78%)
BR100 6,659 Increased By 113.6 (1.73%)
BR30 22,640 Increased By 342 (1.53%)
KSE100 64,644 Increased By 940.8 (1.48%)
KSE30 21,904 Increased By 396.5 (1.84%)

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.