European Shares Fall 1% on Fears of Monetary Tightening

European shares retreated more than 1%, amid fears of a faster-than-expected global monetary policy tightening, while lower commodity prices dented mining stocks to their lowest level in a month.

The pan-European STOXX 600 index fell 1.5%, to its lowest level in two weeks, while mining shares fell 4.2%.

Asian stocks also fell earlier in the day to their lowest levels this year, as the minutes published on Wednesday of the latest meeting of the US Federal Reserve gave the impression of an imminent reduction in the massive bond-buying program in the era of the Corona pandemic.

Although the European Central Bank has stuck to its policies so far, rising inflation has raised fears that global central banks will begin to abandon the easing of their monetary policies that have been instrumental in raising global stock indices to record levels.