European stocks extend declines as traders weigh interest rate outlook

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European equities fell, following weeks of losses, as central banks’ tightening monetary policy and the war in Ukraine continued to darken the market mood.

The regional Stoxx Europe 600 share index, which has ended the past three weeks in the red, fell 0.6 per cent in early dealings. London’s FTSE 100 dipped 0.3 per cent and Germany’s Xetra Dax lost 0.2 per cent. A FTSE index of Asia Pacific shares, excluding Japan, dropped 1.3 per cent.

The dollar index, which measures the US currency against six others and tends to rise when appetite for riskier assets falls, scaled a fresh 20-year high.

The moves came after US stock markets closed out their longest streak of weekly losses since 2011, after the Federal Reserve last week raised its main interest rate by 0.5 percentage points to battle soaring inflation.

Rate rises last week from central banks in the UK, India and Australia also overshadowed progress that companies have reported during the…

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