European stocks drop

Business | 18 Jun 2021 4:49 pm

A slide in bank and energy stocks hit European shares on Friday, with a hawkish policy outlook from the U.S. Federal Reserve also casting a dampener on the STOXX 600's fifth straight weekly gain, Reuters reports.

The banking index, which typically does well when interest rates are high, fell by 1.2 percent to track an overnight slump in its U.S. peer, as investors booked profits after steady gains in the sector this year.

Insurers, telecom stocks and energy stocks lost between 0.8 percent and 1.2 percent, while industrials and real estate stocks were among the biggest gainers.

By 0824 GMT, the pan-European STOXX 600 index was down by 0.2 percent.

Germany's DAX index fell by  0.3 percent as data showed a bigger-than-expected jump in May producer prices.

But German bond yields edged lower, with analysts expecting the adverse reaction of euro zone bond prices to the Fed to be short-lived.

Switzerland's blue-chip stock index SMI won 0.4 percent to hit an all-time high and was on course for its 14th straight days of gains.


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