Adidas shares fell on the European stock exchanges after pessimistic expectations

European stocks fell on Friday, affected by a jump in bond yields at a time when investors were concerned about the possibility of a prolonged cycle of interest rate hikes by major central banks, while sentiment was further affected by bleak forecasts from Adidas.

The pan-European Stoxx 600 index closed down 1.0%, marking its first weekly decline in three weeks.

All eyes are on US consumer price data for January due to be released next week, which will be crucial in shaping market expectations for future interest rate hikes.

Travel, leisure and retail stocks were the worst performers among the STOXX 600 sector indices, down 3.9% and 3.5% respectively.

The energy sector bucked the trend and advanced 2.3%, supported by BP and Shell shares, which tracked the impact of higher oil prices in light of Russia’s plans to cut oil production.

Adidas shares fell 10.9%, its biggest drop in nearly three years, after the sportswear maker warned it could slip into a loss this year for the first time in three decades. Its rival, Puma, fell 4.6%.

The European stock index rose during Thursday’s trading to its highest level in nearly a year, after positive results for the work of some companies during the fourth quarter of last year.

(Reuters, The New Arab)