(Reuters) – European stocks fell on Tuesday, under pressure from the banking and energy sectors, as strong data on US services sector activity raised fears that the Federal Reserve (the US central bank) would continue to raise interest rates to high rates.
The index fell 0.1%, extending losses for the third consecutive session.
The index posted seven consecutive weeks of gains in hopes that signs of easing inflation will allow the US central bank to slow its rapid rate hike.
However, a report on Monday showed an unexpected rebound in US service sector activity in November, coupled with last week’s strong jobs data, providing new evidence of economic resilience and weighing on sentiment.
The energy index fell by 0.7%, while the banking index fell by 0.6%. However, rising shares in consumer staples companies, such as Nestle and Unilever, limited losses.
(Prepared by Marwa Gharib for the Arab Bulletin – Editing)
