European shares set for weekly drop as higher-for-longer rates loom

European shares slipped on Friday and were on track to close a week packed with central banks' decisions sharply lower as investors assessed the prospects that borrowing costs will remain high for some time.

The pan-European STOXX 600 index inched 0.6% down by 0709 GMT, after ending the previous session over 1% lower as the Bank of England followed the U.S. Federal Reserve in keeping rates steady, but flagged that the central bank does not think its job is done. Rate-sensitive technology and real estate stocks fell 0.3% and 1.1%, respectively, while banks eased 0.4%.

Shares of Chrysler parent Stellantis shed nearly 1% as the Detroit Three automakers and the union representing the companies' U.S. hourly workers entered the final hours to reach new labour agreements before the current coordinated strike expands to include more plants. Spain's gross domestic product grew 0.5% in the second quarter, National Statistics Institute said, as it revised its July estimate up from a 0.4% growth.

 

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