STOXX 600 drops 3.3 this week
Euro zone business activity falls in Dec
Industrials, tech stocks weigh
Games Workshop jumps on deal with Amazon

Dec 16 Reuters European shares slid on Friday, ending the week sharply lower after major central banks flagged further rate hikes, while economic activity data from the euro zone failed to assuage concerns of a looming recession.

The Europewide STOXX 600 index closed 1.2 lower on Friday, ending the week with a loss of nearly 3.3.

The index posted its steepest oneday drop since May in the previous session after the European Central Bank ECB joined the U.S. Federal Reserve in saying monetary policy will continue to tighten even at a risk to the economy.

ECB President Christine Lagarde said on Thursday there would likely be more 50basispoint rate hikes for a period of time and that the central bank was not pivoting yet.

The hawkish messages dealt a blow to markets, which had rallied in recent weeks on hopes that signs of cooling inflation would pave the way for major central banks to end their aggressive ratehike trajectory soon.

Beyond the inflationary pressures, there is a growth issue at stake, said Giuseppe Sette, president of AI investment platform Toggle.

There is a very clear emerging consensus that the risk of recession is a concrete risk for next year. If we have a severe recession next year, earnings are going to fall and valuations are going to be unsustainable.

Investment bank JPMorgan ramped up its forecast…