A Sharp Decline in European Shares Due to a Global Sell-off

European shares fell sharply on Friday following a global sell-off in stock markets on concerns linked to the pace of central bank tightening and weak economic data.

The pan-European Stoxx 600 index fell 1.4 percent in a broad sell-off and is headed for its worst daily performance in nearly two weeks, as investors await the next meeting of the Federal Reserve (the US central bank) for details of how it will deal with rising inflation.

In addition, consumer prices in the euro area jumped at a record pace in December due to increased energy prices and supply chain crises.

The Stoxx 600 index is heading for the third consecutive weekly decline, affected by a decline in the technology sector by more than two percent due to fears that US interest rates will rise faster than expected before the US Federal Reserve meeting.

Anglo-Australian mining company Rio Tinto fell 3.1 percent after Serbia withdrew its licenses to explore lithium over environmental concerns, denting the company’s ambition to become Europe’s largest supplier of the mineral.

Airbus shares fell 1.5 percent after the company said it had canceled a contract with Qatar Airways to supply 50 A321neo aircraft.

Shares in Siemens Energy plunged 11.4 percent after the company cut its forecasts after its wind turbine maker Siemens Gamesa warned of prolonged supply chain crises, renewing pressure on the German company to take over the entire unit.