European stocks fell as concern over interest rates returned

European stocks fell on Friday and were about to end a three-day winning streak as investors assessed the prospects for prolonged global monetary tightening, and a bleak outlook from German sportswear outfit Adidas weighed on sentiment.

The pan-European STOXX 600 index was down 0.6% by 0815 GMT, after touching a one-year high on Thursday after a series of corporate earnings data spurred risk appetite.

Retail and basic resources stocks fell nearly 1 percent each, the worst performers among sector indices.

Swedish defense equipment maker SABB jumped 8.8 percent to top the STOXX 600 index gains on the back of higher operating profits in the fourth quarter. The company also expected operating revenues to grow 15 percent in 2023 and operating income to grow faster than revenues.

Adidas shares fell 9.4%, heading for the largest one-day drop in 11 months, on expectations of a large drop of nearly ten percent in 2023 sales, which also led to a 2% decline in its peer Puma.

British Standard Chartered fell 5.7 percent and is on track to record its biggest one-day drop in six months after First Abu Dhabi Bank, the largest bank in the UAE, announced that it was not currently evaluating a takeover offer.