European shares decline as Powell stamps out rate peak hopes

Nov 10 – European shares fell on Friday, hurt by higher bond yields, with comments from US Federal Reserve chief Jerome Powell pouring cold water on investor optimism over a peak in interest rates and bets around rate cuts.

The pan-European STOXX 600 fell 0.4% by 0810 GMT, although it remained poised for a second weekly gain.

Fed officials including Powell on Thursday expressed uncertainty in their battle against inflation and added that they would tighten policy further if need be.

The comments, perceived as hawkish by markets, follow European Central Bank and Bank of England policymakers also pushing back against expectations around rate cuts.

Richemont CFR.S shed 3.0% after the Swiss luxury group reported weaker-than-expected earnings, while Diageo slid 8% as the Johnnie Walker whisky maker expects organic operating profit growth to decline in its current financial year’s first half.

GN Store Nord jumped 13.1% to top the STOXX 600 following third-quarter results and forecast.

(Reporting by Ankika Biswas in Bengaluru; Editing by Varun H K)