Adidas shares fell on the European stock exchanges following pessimistic expectations
European stocks fell on Friday, affected by a jump in bond yields at a time when investors were worried regarding 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 January consumer price data due 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 the rise in oil prices in light of Russia’s plans to cut oil production.
Adidas shares fell 10.9%, its biggest drop in nearly three years, following the sportswear maker warned it might 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, following positive results for the work of some companies during the fourth quarter of last year.
(Archyde.com, The New Arab)
