European stocks drop as Powell's hawkish remarks weigh on markets

European markets closed lower on Friday, with the STOXX 50 falling 0.7% and the STOXX 600 down 0.6%, following a solid gain of over 1% in the previous session.

European stocks drop as Powell's hawkish remarks weigh on markets

Investor sentiment soured in Europe and the US after hawkish comments from Federal Reserve Chair Jerome Powell, who dampened expectations of imminent rate cuts by emphasizing the economy's strength, a solid labor market, and persistent inflation. Disappointing UK GDP growth of just 0.1% in Q3 also weighed on sentiment. On the corporate front, ASML Holding dropped 1.8%, SAP fell 1.2%, and Sanofi lost 3.3%.

Generali shares rise 4%, but STOXX indices drop 0.7% weekly

However, shares of Generali Group gained over 4%. The STOXX 50 and STOXX 600 are down approximately 0.7% for the week.