European Stocks Open Down, Siemens Energy Plunges

European stock markets on Friday started lower at the end of the week as central bank policy bolstered expectations that higher interest rates could last longer, while the company withdrew its full-year earnings forecast. Siemens Energy shares fell. 

The index has fallen 2.8% so far this week as investors digest fears of further interest rate hikes by major central banks, including the Bank of England, the Bank of Norges and the Swiss National Bank, as well as fears of higher inflation for a long period of time. 

Germany’s DAX index  fell 0.7%, the biggest drop among regional peers as Siemens Energy shares fell 30.3%. 

The company, which provides equipment and services to the energy sector, warned that the impact of the quality issues at Siemens Gamesa wind turbines will continue for years to come. The European oil and gas index fell 1.7%, leading to sectoral losses.

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