European stocks fell as the US Federal Reserve undermined hopes that interest rates would reach their peak

European stocks fell on Friday, pressured by rising bond yields, and comments by Federal Reserve Chairman Jerome Powell undermined investors’ hopes that interest rates would peak.

The European STOXX 600 index fell 0.4 percent by 0810 GMT, but is still heading for gains for the second week.

Fed officials, including Powell, on Thursday expressed doubts that their fight against inflation was over, adding that they would continue to tighten monetary policy if necessary.

Markets considered these statements to be extremely hawkish, as they came after policymakers at the European Central Bank and the Bank of England resisted expectations of lowering interest rates.

Richemont shares fell three percent after the Swiss luxury goods group announced lower-than-expected profits, and Diageo (LON:DGE) shares fell eight percent as the alcoholic beverage manufacturer expects that the original growth in operating profits will decline in the first half of its current financial year.

But GN Store Nord shares jumped 13.1 percent and topped the STOXX 600 index after the company announced its third-quarter business results and expectations.