European shares fall on weak commodities, mixed corporate earnings

European shares fell on Friday, dragged down by weak commodity prices and mixed corporate earnings, as investors weighed the path to tighten monetary policy amid a slowdown in economic growth.

The pan-European STOXX 600 index fell 0.9 percent by 0719 GMT; miners led losses with commodity prices tumbling amid concerns about the expansion of Covid-19 restrictions in China.

The index closed little changed on Thursday after the European Central Bank raised interest rates as expected but said it had already made “substantial” progress in trying to stem the historic rise in inflation.

Shares of technology companies in Europe fell 2.1 percent, as the series of disappointing results for its counterparts on Wall Street seem to continue after weak expectations from Amazon.

Volkswagen shares fell 2.4 percent after Europe’s largest carmaker said it expected deliveries close to last year’s levels and reported profits below pre-pandemic levels in the third quarter of 4.3 billion euros ($4.28 million).

Danone shares rose 1.3 percent after it raised its revenue growth forecast for 2022, as the French food group managed to raise prices to meet rising costs.