The pan-European Stoxx 600 dropped 1.5% in early trade, with basic resources shedding 2.9% to lead losses as all sectors and major bourses slid into negative territory.

In terms of individual share price movement, wind turbine manufacturer Siemens Gamesa plunged more than 14% after cutting its revenue guidance for 2022, dragging owner Siemens Energy 9% lower. Barely any stocks on the European blue chip index made gains in early deals.

The losses come after sharp declines on Wall Street as rising rates continue to exert downward pressure on technology stocks by making future profits less attractive.

The declines were deepened by a plunge in Netflix shares after the company’s fourth-quarter earnings report showed a slowdown in subscriber growth.

U.S. stock futures indicate further losses at Friday’s open, while markets in Asia-Pacific also tumbled overnight.

Back in Europe, Britain’s GfK Consumer Confidence Index sank to -19 in January from -15 in December, its lowest reading since February 2021, as soaring inflation and the prospect of further interest rate hikes dampened the outlook.

An initial “flash” consumer confidence reading for the euro zone is expected on Friday afternoon. There are no major earnings due in Europe on Friday.

In corporate news, Rio Tinto shares took a hit overnight after Serbia revoked the Anglo-Australian mining company’s lithium exploration licenses, citing environmental concerns.

Meanwhile, Unilever has ruled out a fourth increase to its bid for GlaxoSmithKline’s consumer health-care business, effectively abandoning a tie-up that had ruffled feathers among investors.