Energy and tech stocks drag markets lower as rate-hike worries resurface

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Energy and tech stocks drag markets lower as rate-hike worries resurface via IrishTimesBiz

Concern about interest rates and lower oil prices pulled Ryanair in different directions but left the airline’s share price unchanged at €15.05.Britain’s FTSE 100 ended lower on Friday, with energy stocks leading losses as oil prices fell on concerns about interest rates staying higher for longer, while lender NatWest dropped on a dour earnings forecast.

“Investors are reappraising their expectations for interest rates in the light of very strong data in the US and some quite hawkish comments from central banks,” said Paul O’Connor, head of multi asset at Janus Henderson Investors. Meanwhile, shares of NatWest tumbled 6.9 per cent to the bottom of the index, after the British bank warned that rising interest rates may not deliver the long-lasting earnings bonanza investors hope for.Energy firms fell 1.9 per cent to spearhead declines on the Stoxx 600 as crude prices dropped on concerns of more US rate hikes weighing on demand. Rate-sensitive technology shares followed suit with declines of 1.7 per cent.

Still, the broader Stoxx 600 logged weekly gains of 1.4 per cent on a boost from upbeat earnings, improving euro zone economic outlook, with certain consumer discretionary stocks, including big luxury names benefiting from the reopening in China.

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