Europe: Tech leads stock sell-off on bets of aggressive Fed rate hikes

[LONDON] European shares fell on Friday, tracking a sell-off in global markets after red-hot US inflation data fuelled bets on a more aggressive Federal Reserve rate hike, though dovish comments from the European Central Bank chief stemmed some losses.

The pan-European STOXX 600 dropped 0.5 per cent after data showed US consumer prices saw the biggest rise in 40 years in January, and St Louis Federal Reserve Bank President James Bullard said the print had made him "dramatically" more hawkish.

Nearly all sectors and regions were in negative territory, but rate-sensitive tech stocks were the biggest decliners, falling 1.2 per cent.

Carmaker Volvo Cars slipped 4.7 per cent after posting earnings below analysts' expectations, pressured by the lingering global supply shortages.

State-controlled French power company EDF slipped 3.0 per cent after cutting its estimate for its French nuclear output in 2023 from 340-370 TWh to 300-330 TWh.

French TV group TF1 climbed 1.7 per cent after announcing a 14.2 per cent rise in full-year advertising revenue, citing a robust recovery in advertising spend. REUTERS