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European stocks slump after Wall St rout on rate hike worries

© Reuters. FILE PHOTO: A man points at a computer screen showing stock information in this illustration photo taken in Bordeaux, France, March 30, 2016. REUTERS/Regis Duvignau

(Reuters) – European stocks slumped on Thursday, echoing sharp losses on Wall Street overnight, after U.S. inflation data fuelled concerns about the impact of bigger interest rate hikes on economic growth.

The continent-wide index slid 2.2% by 0710 GMT, reversing much of the mid-week gains. Technology and mining stocks were among the top decliners on the index, with all the sectors trading in the red.

U.S. tech-heavy index Nasdaq tumbled over 3% on Wednesday, taking year-to-date losses to 27%, after data showed U.S. consumer prices moderated in April but increased more than economists’ expectations.

Meanwhile, UK’s fell 2.1% as data showed Britain’s economy shrank by 0.1% in March. ()

Commerzbank (ETR:) fell 2.4% despite confirming its full-year net profit target of more than 1 billion euros.

Franco-Italian chipmaker STMicroelectronics slipped 0.8% even as it forecast more than $20 billion in annual sales by 2027 at the latest.

French video game group Ubisoft dropped 3.7% after forecasting lower operating profit for 2022-23.


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