European stocks were down sharply on Friday as investors digested a series of central bank decisions and a new economic plan from the UK
The Stoxx 600 was down 2.8% in the early afternoon, with all sectors and major exchanges trading in the red.
Oil & Gas stocks and Basic Resources were the main losers, both down more than 4%.
Thursday’s market moves come after the UK government announced a series of tax cuts as the country prepares for a recession. Sterling was down 1.8% against the dollar around midday to trade at $1.1048 after the news.
The Bank of England too increased rates by 50 basis points on Thursday – his seventh straight increase – and said he believed the UK economy was already in recession.
Also on Thursday, the Swiss National Bank raised its benchmark rate to 0.5%a change that ends an era of negative rates in Europe.
The US Federal Reserve, on the other hand, increased by an additional three-quarters of a percentage point Wednesday, and indicated that the hikes would continue.