Brussels, January 31 (QNA) – European stocks fell on Tuesday, weighed down by expectations of a rate hike by major central banks this week.
The European Stoxx 600 index fell 0.2 percent, but it is heading to end the month of January with a positive performance, supported by hopes for better-than-expected corporate profits and economic resilience.
Rheinmetall shares fell 5 percent after offering a convertible note, UBS Group AG Shares also fell 2.6 percent, while the shares of Novo Nordisk and AstraZeneca pushed the health care sector to decline.
The decline of most European stocks comes as a result of expectations that the US Federal Reserve, in its meeting that started today, will raise the interest rate by 25 basis points to 4.50-4.75 percent.
The European Central Bank and the Bank of England are also expected to raise interest rates by 50 basis points each, to 2.50 percent and 4 percent, respectively, next Thursday.