European shares drop as inflation, slowdown fears grip markets
European shares dropped on Friday, triggered by fears that major central banks would retain their aggressive rate-hike stance to rein in prices, while investors digested mixed earnings reports that did little to ease concerns of an economic slowdown.
A slew of recent inflation reports and data indicating a strong U.S. labour market have dealt a blow to hopes of the Federal Reserve and other major central banks toning down their hawkish policy approach anytime soon.
Adding to the jitters was U.S. social media company Snap Inc’s (SNAP.N) bleak fourth-quarter outlook that sounded alarm bells about a hit to advertising from rampant inflation, setting Wall Street up for early losses.
Shares of Adidas (ADSGn.DE) dropped 8% as the German sporting goods maker cut its full-year outlook, citing weaker demand. read more
Renault (RENA.PA) confirmed its full-year outlook and posted a rise in quarterly sales. Still, shares of the French carmaker were down 2.3%, with its executive flagging raw material supply concerns.
Swedish telecom operator Telia (TELIA.ST) fell 8% after trimming its outlook while Sika (SIKA.S) dropped 3.7% after the Swiss chemicals maker missed its third-quarter profit expectations.
