European shares drop but EDF surge limits losses

European shares tracked dismal global sentiment lower on Tuesday, although a strong performance by French power company EDF following a 9.7-billion-euro ($9.85 billion) nationalisation plan and upbeat corporate earnings limited losses. Than pan-European STOXX 600 index fell 0.5% after rallying strongly in the previous two sessions.

European shares tracked dismal global sentiment lower on Tuesday, although a strong performance by French power company EDF following a 9.7-billion-euro ($9.85 billion) nationalization plan and upbeat corporate earnings limited losses.

Then pan-European STOXX 600 index fell 0.5% after rallying strongly in the previous two sessions. Interest rate-hike worries heightened after sources said European Central Bank policymakers will discuss whether to raise rates by 25 or 50 points at their meeting on Thursday to tame record-high inflation.

Technology stocks slumped 1.4% after a Bloomberg report said Apple Inc plans to slow hiring and spending growth next year in some units to cope with a potential economic downturn. Rising COVID-19 cases in China, the world's second-largest economy and top metals consumer, also hit sentiment. Base metals fell, dragging European miners down 1.0%.

EDF jumped 15% after France's government said it will offer 12 euros apiece to take full control of the power company in a buyout offer that gives it free hand to run the group as it contends with a European energy crisis. In earnings, drugmaker Novartis gained 0.2% and London-listed money transfer co Wise Plc rose 11.2% after the results.