European stocks are heading towards a weekly loss

European stocks fell on Friday, heading for a weekly loss, after major central banks pledged to raise interest rates further to counter inflation, raising concerns about a global economic slowdown next year.

The European Stoxx 600 index fell 0.2 percent to a new low, the lowest in a month, at 427.96 points by 0813 GMT, and is expected to incur a weekly loss of 2.4 percent.

The index witnessed its largest one-day decline since May in the previous session after the European Central Bank joined the Federal Reserve (the US central bank) in saying that monetary policy tightening will continue despite the risks that this poses to the economy.

Telecom and retail shares led losses on Friday among the major sectors listed on the STOXX 600. Banking shares, which are sensitive to the economic outlook, rose 0.1 percent after falling sharply in the past week.