European shares tumble on COVID surge, rate hike fears

Tech stocks plunged 2.5% as prospect of a high-rate environment dented appeal of the high-growth sector. Travel stocks slipped 0.9% after the United States issued an advisory against movement to Germany and Denmark due to rising COVID-19 cases, while oil stocks slid 0.3% tracking a dip in crude prices on growing expectations that the U.S., Japan and India will release crude reserves to tame prices.

European stocks slumped to three-week lows on Tuesday as a resurgence of COVID-19 cases and rate hike concerns knocked sentiment ahead of flash readings on eurozone business activity.

The pan-European STOXX 600 dropped 1% by 0815 GMT after Asian markets followed Wall Street lower on Federal Reserve Chair Jerome Powell's renomination, which buoyed bets on U.S. rate hikes in 2022. Tech stocks plunged 2.5% as the prospect of a high-rate environment dented the appeal of the high-growth sector.

Travel stocks slipped 0.9% after the United States issued an advisory against movement to Germany and Denmark due to rising COVID-19 cases, while oil stocks slid 0.3% tracking a dip in crude prices on growing expectations that the U.S., Japan, and India will release crude reserves to tame prices. Overall, growing nerves around the fourth wave of COVID-19 infections stalling European economic recovery at a time when central banks are planning the withdrawal of monetary support pulled investors out of equities.

Germany's ThyssenKrupp slumped 6.9% on news that Swedish activist fund Cevian is placing a 6.9% stake in the firm, Refinitiv news service IFR reported.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)