European shares decline as Powell stamps out rate peak hopes


European shares fell on Friday, hurt by higher bond yields, with comments from U.S. Federal Reserve chief Jerome Powell pouring cold water on investor optimism over a peak in interest rates and bets around rate cuts.


Fed officials including Powell on Thursday expressed uncertainty in their battle against inflation and added that they would tighten policy further if need be.

The comments, perceived as hawkish by markets, follow European Central Bank and Bank of England policymakers also pushing back against expectations around rate cuts.