European stocks are heading for the biggest weekly losses in two months

European shares fell on Friday, heading for their worst week in two months, after a sharp fall in Wall Street as investors feared a bigger interest rate hike would be needed to curb high inflation.

The pan-European STOXX 600 index was down 0.6 percent by 0709 GMT, with the travel, leisure and technology sectors being the biggest losers. Oil and gas stocks were the only gainers with crude prices above $110 a barrel.

US stocks closed sharply lower on Thursday as investor sentiment dented in the face of concerns that this week’s interest rate hike won’t be enough to stem spiraling inflation.

The earnings also negatively affected sentiment in Europe.

Adidas stock fell 4 percent as the company cut its forecast for 2022 sales due to the continued anti-pandemic closures in China to harm the German sportswear company.

ING Group, the largest Dutch bank, fell 2.2 percent as it reported worse-than-expected quarterly net income, including an increase in provisions for bad loans due to exposures in Russia and Ukraine.

Denmark’s Ambo Medical Devices fell 13.9 percent after announcing pessimistic full-year profit forecasts due to supply chain problems and a shortage of hospital staff.