The interest rate hike is causing losses to global markets

European shares fell on Friday, heading for their worst week in two months, after a sharp fall in Wall Street as investors feared a bigger interest rate hike would be needed to curb high inflation.

The European Stoxx 600 index fell 0.6%, by 07:09 GMT, and the shares of the travel, entertainment and technology sectors were the biggest losers. Oil and gas stocks were the only gainers with crude prices above $110 a barrel.

US stocks closed sharply lower on Thursday as investor sentiment waned in the face of fears that this week’s interest rate hike would not be enough to stem spiraling inflation.

The earnings also negatively affected sentiment in Europe.

By Editor