European Shares Decline As Treasury Yields Climb

(RTTNews) - European shares fell sharply on Friday after two Federal Reserve officials said interest rates may need to move to a higher level than anticipated.

More hawkish rate repricing has driven up U.S. Treasury rates and dented demand for riskier assets.

In economic releases, investors ignored data showing that Germany's producer price inflation eased for the fourth straight month in January to reach its lowest level in nearly one-and-a-half years amid a continued slowdown in energy prices.

The producer price index climbed 17.8 percent year-over-year in January, which was slower than the 21.2 percent surge in December. Economists had forecast the price growth to ease to 16.4 percent.

Elsewhere, U.K. shop sales volumes unexpectedly rose by 0.5 percent in January, after falling in December, official figures showed.

The pan-European STOXX 600 was down 0.9 percent at 461.07 after gaining 0.2 percent on Thursday.

The German DAX fell over 1 percent, France's CAC 40 index gave up 0.9 percent and the U.K.'s FTSE 100 was down 0.3 percent.

Swiss specialty chemical firm Sika AG rallied 3 percent after its fiscal 2022 net profit grew 11 percent from last year.

Global reinsurance giant Swiss Re declined 1.4 percent after reporting a dip in net income for the full year 2022.

Sartorius AG, a German biopharmaceutical firm, fell nearly 2 percent after order intake dropped 6.1 percent in fiscal 2022 from last year.

Mercedes-Benz Group gained 2.5 percent. The carmaker delivered strong full-year results and said it intends to repurchase up to 4 billion euros of shares over the next two years.

Allianz SE lost 3.2 percent after fourth-quarter profits fell at its nonlife and asset-management operations.

Air France-KLM shares jumped more than 9 percent in Paris after the airline reported robust bookings for 2023 and forecast higher margins.

Kingspan Group shares soared 6.3 percent in London. The Irish building materials firm reported higher revenue and profit last year despite "bumpy" economic conditions. Medical products maker Smith+Nephew fell about 1 percent after naming Rupert Soames as its new chairman designate.

Warehouse specialist SEGRO advanced 1.5 percent after delivering a strong operational result for 2022.

Lender NatWest fell more than 8 percent despite reporting a strong rise in annual profits.