European stocks fall as inflation and slowdown fears dominate the markets

European shares fell on Friday, amid fears that major central banks will stick to raising interest rates to curb prices, while investors assessed mixed earnings reports that did little to allay fears of an economic slowdown.

A slew of inflation reports and data pointing to the strength of the US labor market have dealt a blow to hopes that the Federal Reserve and other major central banks will ease their approach to monetary tightening soon.

Concerns increased after the US social networking company Snap announced bleak forecasts for the fourth quarter and sounded the alarm about advertising damage from rampant inflation, raising expectations that Wall Street will post early losses.

Adidas shares fell 8 percent, after the German company specialized in sports products cut its forecast for the full year, and attributed this to weak demand.

French car maker Renault kept its forecast for the year as a whole unchanged and posted an increase in quarterly sales. Nevertheless, the company’s stock fell 2.3 percent, with management concerned about the supply of raw materials.

The Stoxx index fell 600 and one percent, after it rose in volatile trading on Thursday, following the resignation of Liz Terrace as Britain’s prime minister.

All sectors’ indices recorded losses, led by retail shares, which fell three percent.