Ratesensitive tech leads falls, banks rise
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Telecoms dragged by Vodafone shares

June 8 Reuters European shares dipped on Thursday as ratesensitive technology shares slipped on expectations of further interest rate hikes by major central banks, although gains in banks helped limit losses.

The panEuropean STOXX 600 index edged 0.1 lower, with the technology sector down 1.2. European bank shares rose 0.6.

Fears that the U.S. Federal Reserve could opt for a hawkish stance in its meeting next week and expectations that the European Central Bank will continue to tighten its monetary policy weighed on stocks.

This sentiment comes after the Bank of Canada hiked its overnight rate to a 22year high of 4.75 on Wednesday and markets and analysts immediately forecast yet another increase next month.

Italy and Spain39;s lenderheavy indexes rose about 0.4 each and were among early outperformers.

The latest developments have also run against the prevailing narrative that central banks are on the verge of pausing their rate hikes, particularly given Canada was one of the first to formally signal a pause back in January, Deutsche Bank strategists Jim Reid and Henry Allen wrote in a note.

The big question now is whether the Fed might follow up with a hike of their own next Wednesday or whether they39;ll finally keep rates on hold after 10 consecutive increases.

Among other major central banks, the Reserve Bank of Australia RBA…