LONDON: European stocks fell Tuesday, as speculation about a rate hike in the U.S. and concerns over Greece’s reform program outweighed optimism over the European Central Bank’s bond buys.
The benchmark Stoxx Europe 600 index SXXP, -0.90% slumped 0.9% to end at 389.66. But outperforming the index, banking giant Credit Suisse Group AG CSGN, +7.76% CS, +0.04% jumped 7.8% after news that Prudential CEO Tidjane Thaim will take over the helm at the Swiss bank.
U.S. rate blues: European stock markets were hampered by a selling spree in U.S. stocks, spurred by nervousness about what’s seen as a virtually inevitable U.S. rate hike this year. A solid February jobs report released last week has increased speculation the Federal Reserve’s statement next week might hint at a rate increase in coming months.
The European energy group SXEP, -3.48% suffered the biggest loss among major sectors, with dollar-denominated oil prices hit by the surge in the U.S. dollar DXY, +0.08% against its rivals. The dollar has jumped due to the divergence between the Fed’s widely anticipated shift into tightening mode and the continuing pursuit of stimulus by the European Central Bank and the Bank of Japan, among other central banks.
In the group, Galp Energia GALP, -7.32% fell 7.8%, BG Group PLC BG., -7.40% lost 7.4% and Subsea 7 SA SUBC, -5.55% moved down 5.6%.
Greece jitters: With little data to distract on Tuesday, continued concerns about Greece’s financial situation weighed on markets.
