(Reuters) – European shares opened sharply lower on Wednesday, as more hawkish remarks from European Central Bank (ECB) officials tempered interest rate cut expectations, while glum economic data from China further soured investor sentiment.
The pan-European STOXX 600 index was down 1.2% by 0814 GMT, hitting its lowest level in more than a month.
In the latest of remarks from policymakers, ECB President Christine Lagarde said the central bank is on track to get inflation back to its 2% target but victory had not yet been won, while Dutch central bank chief Klass Knot said any rate change was unlikely in the first half of 2024.
Traders have pushed back rate-cut expectations to April from March, although still estimate a total of around 150 basis point cut in interest rates this year. [0#ECBWATCH]
Meanwhile, data showed China’s economic growth rate for fourth quarter missed market expectations, adding to the risk-off appetite for equities.
China-exposed luxury stocks including LVMH and Kering fell 1.6% and 2.0%, respectively.
Among other major movers, Worldline added 2.6% after Reuters reported the payments group was reviewing options to reassure shareholders and avoid a hostile takeover.
(Reporting by Shristi Achar A in Bengaluru; Editing by Rashmi Aich)
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