U.S. stocks in Europe drop after hawkish Fed comments - BNN Bloomberg

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European stocks fell and Wall Street equity futures were steady as investors weighed hawkish comments from Federal Reserve officials and looked toward the release of U.S. inflation data due on Thursday for clarity on the trajectory for interest rates.

The Stoxx Europe 600 Index dropped 0.7 per cent, retreating from an eight-month high as retail and technology stocks led declines. Contracts on the S&P 500 and Nasdaq 100 pared earlier losses. Richard Branson's Virgin Orbit Holdings Inc. tumbled in U.S. premarket trading after a failed attempt to send Britain's first satellites into orbit from its own soil.

“The same pattern keeps emerging, with investors clinging onto any data which appears to show the economy is cooling off, only to see their hopes dashed by policymakers who clearly believe the inflation-busting job is far from over,” said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

The Bloomberg Dollar Spot Index was little changed, while Treasury 10-year yields crept higher to 3.55 per cent.

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