European stocks are falling following signs that the European Central Bank will raise interest rates this year, and technology stocks are the worst performers.
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European shares decline
European shares fell on Thursday, following signs that the European Central Bank is likely to raise interest rates this year, while weak results from Facebook owner Meta Platforms added pressure on global technology shares.
The European “Stoxx 600” index closed down 1.8 percent, and technology stocks were the worst performers, as they fell 3.5 percent.
The sector was pressured by rising bond yields following European Central Bank President Christine Lagarde chose not to repeat her previous comment that a rate hike in 2022 was unlikely, in the face of rising inflation.
Concerns regarding monetary tightening this year sent European technology shares down 12 percent in January, their worst month since the height of the 2008 financial crisis.
Adding to the pressure on global technology stocks, Meta Platforms lost nearly a quarter of its value following posting much weaker-than-expected results.
European banks were the best performers on Thursday, while telecom shares were supported by Deutsche Telekom, whose shares rose 2.6 percent thanks to the strong results of its US unit, T-Mobile.
