European shares skid to 3-week lows on Covid surge, rate hike fears

STOXX 600 set for worst day in nearly two months

European stocks slumped to a three-week low on Tuesday and were set for their worst session in nearly two months as a risk-off mood deepened amid a resurgence in COVID-19 cases and rate hike concerns.
 

The pan-European STOXX 600 shed 1.3%, led by a 2.7% drop in tech stocks as prospects of a high-rate environment dented appeal of the high-growth sector.
 

U.S. President Joe Biden on Monday tapped Jerome Powell to continue as Fed chair, lifting bets of U.S. rate hikes in 2022.

Money market traders have now fully priced in a 10-basis-point rate hike by the European Central Bank in