European stocks tumbled sharply on Thursday after signs the European Central Bank is set to raise rates this year, while weak results from Facebook’s Meta, which owns Facebook, added to pressure on global tech stocks.
The pan-European STOXX 600 index closed down 1.76% at 468.63 points, with tech stocks the worst performer, down 3.5%.
The sector has come under pressure for a jump in bond yields after ECB President Christine Lagarde chose not to repeat her earlier comment that an interest rate hike in 2022 is unlikely given higher inflation.
The flurry of monetary policy tightening this year sent European tech stocks down 12% in January, their worst month since the height of the 2008 financial crisis.
The prospect of rising interest rates affects the value of future technology earnings. The British central bank also raised interest rates on Thursday.
Adding to the pressure on global tech stocks, Meta lost nearly a quarter of its value after a much weaker-than-expected result.
- In London, the Financial Times index fell 0.71%, to 7,528.84 points;
- In Frankfurt, the DAX index fell 1.57% to 15,368.47 points;
- In Paris, the CAC-40 index lost 1.54%, at 7,005.63 points;
- In Milan, the Ftse/Mib index had a devaluation of 1.09%, to 27,088.96 points;
- In Madrid, the Ibex-35 index registered a drop of 0.27%, to 8,689.40 points;
- In Lisbon, the PSI20 index depreciated by 0.87%, to 5,579.15 points.
Source: CNN Brasil
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