European Shares Slide Amid Hawkish Fed Commentary

European shares fell as U.S. policymakers' hawkish remarks dashed interest rate cut hopes, despite the STOXX 600 index achieving its best weekly performance since late September. Banks and technology stocks led the decline, while Richemont and Siemens Energy were among the exceptions with impressive gains.

On Friday, European shares experienced a downturn, driven by hawkish statements from U.S. policymakers that dampened hopes for an immediate interest rate cut. Despite this, the STOXX 600 index notched its strongest weekly performance since September's close.

The pan-European STOXX 600 dropped 1% to 574.81 points, mainly due to the banking sector's 2.4% dip. This week, U.S. macroeconomic developments were closely watched, with investors previously anticipating that data releases would indicate a weaker economy, potentially leading to a December rate cut by the Federal Reserve. However, cautious signals from Fed officials tempered these expectations, increasing pressure on technology stocks.

On a brighter note, Richemont and Siemens Energy bucked the downward trend, showing significant gains. Richemont surged 5.9% following a stronger-than-expected quarterly sales report, while Siemens Energy climbed 9.4%, buoyed by plans to distribute its first dividend in four years and an optimistic mid-term forecast.

(With inputs from agencies.)