European stocks open sharply lower as the US central bank hints at a peak in interest rates

European shares started trading sharply lower on Thursday after the Federal Reserve dashed any hopes of easing monetary tightening policies aimed at curbing inflation, and even hinted at smaller interest rate hikes for a longer period.

The pan-European STOXX 600 index fell 0.9% by 0810 GMT, with interest-rate-sensitive European technology shares falling 1.5%.

Most major European sector indices declined, but the banking sector index rose nearly 0.1 percent.

The Fed raised its benchmark interest rate by 75 basis points for the fourth time in a row on Wednesday. Chairman Jerome Powell announced that future increases could be smaller and said the “final level” of the key rate was likely to be higher than previously expected.

Europe’s travel and entertainment stocks fell 2.1 percent, and Flutter Entertainment led the losses after Australia’s Financial Crimes watchdog ordered an audit of Sportscept, the country’s largest online betting company operated by Flutter.