European Shares Fall After Fed

European shares fell on Thursday after US Federal Reserve Chairman Jerome Powell signaled a rate hike in March and kept monetary policy tight to curb inflation.

The pan-European Stoxx 600 index fell 0.6 percent, with most sectors and markets in the region declining.

After the Federal Reserve’s meeting, Powell said the US central bank would likely raise interest rates in March and confirmed plans to end its bond purchases this month.

Technology stocks led to losses in European shares, while yields of US two-year treasury bills, which reflect interest expectations, rose to a 23-month high in early Asian trading.

Shares of French ST Micro Electronics rose 4.7 percent after announcing its intention to double its investments this year.

Shares in German software group SAP fell 5.6% after it said it planned to buy a majority stake in US financial technology Tolia.

Deutsche Bank shares rose 4.1 percent after posting its biggest annual profit since 2011 last year.