European stocks fall amid caution about US interest

European stocks fell on Tuesday as investors became cautious ahead of a speech by Federal Reserve Chairman Jerome Powell after two US central bank monetary policymakers expected more interest rate hikes.

The Stoxx Europe 600 index was down 0.7 percent by 0811 GMT, after hitting an eight-month high in the previous session.

Investors focused on a speech Powell is scheduled to deliver later in the day after two members of the US Central Bank’s Monetary Policy Committee expressed their expectation that the bank will have to raise interest rates, currently at 4.25-4.5%, to a range of 5-5.25% to rein in inflation.

Technology stocks, which are sensitive to interest rate movements, fell 1 percent, while Novo Nordisk and Novartis Pharmaceuticals fell more than 1.5 percent each, weighing on the Stoxx index.

Mining stocks fell 1 percent on lower copper prices as investors assessed demand risks amid fears of further rate hikes in the United States.

Britain’s FTSE 100 index fell 0.4 percent.