European shares close lower as hawkish Powell comments, omicron fears weigh
European stocks closed lower on Tuesday as new comments from U.S. Federal Reserve Chairman Jerome Powell and fears around the omicron Covid variant weighed on investor sentiment.
The pan-European Stoxx 600 closed 0.9% lower, with travel and leisure stocks shedding 2.8% to lead the losses as most sectors and major bourses slid into negative territory.
Losses accelerated later in the day after the U.S. Fed chief indicated the central bank could hasten a tightening of monetary policy.
Speaking before a Senate committee, Powell said he thinks reducing the pace of monthly bond buys can move more quickly than the $15 billion a month schedule announced earlier this month.
U.S. stocks fell deeper into the red following Powell’s comments, having already been in negative territory as investors reassessed the risks associated with the new omicron Covid variant.
Thai
Eng