European Stocks Dip As Fed And China Weigh On Mood

European stocks took a hit on Friday, as mixed messages from the US Federal Reserve and disappointing Chinese economic data spooked investors and dragged major indices lower across the region.

Europe’s stock rally stalled near yearly highs after the Federal Reserve hinted it may keep rates higher for longer, sparking worries about borrowing costs into next year. Meanwhile, China’s sluggish retail sales growth and persistent declines in home prices cast doubt on the strength of the world’s second-largest economy. That double whammy hit tech, banking, and property stocks particularly hard, with the Stoxx Europe 600 Index down 1.3% by mid-session and sector indices showing similar drops. Not all sectors slumped – oil and gas shares jumped as news of Ukrainian strikes on Russian oil sites sent Brent crude prices up 2.2%. By the close, major regional indices like Germany’s DAX, London’s FTSE 100, France’s CAC 40, and Spain’s IBEX 35 had all fallen between 1.3% and 1.7%.