Traders worried about another U.S. rate hike in 2023
China data points to deflationary pressures
STOXX 600 set for weekly gains

Oct 13 Reuters European stocks slipped on Friday after U.S. inflation data fuelled concerns about interest rates staying higher for longer, while weak inflation data from China added to jitters about the global economy.

The panEuropean STOXX 600 index fell 0.5, with healthcare and financial services sectors leading losses.

Wall Street39;s main indexes closed lower on Thursday after data showed consumer prices rose more than anticipated in September, boosting chances of the Federal Reserve delivering another rate hike this year.

Asian stocks also slid as data from China pointed to persistent deflationary pressures in the world39;s secondlargest economy.

Volatility has gripped equity markets in recent weeks as U.S. bond yields surged to multiyear highs, but stocks have largely remained supported on hopes that the major central banks are near the end of their monetary tightening cycle.

Despite Friday39;s declines, the STOXX 600 is set for its first weekly gains in four.

The next real question is about interest rate cuts and the timing of it. We tend to be a little bit more hawkish, said Bimal Patel, senior fund manager for global equities at Canada Life Asset Management.

The market is pricing in a series of cuts in the second half of next year. If the U.S. economy remains pretty strong, those cuts may not materialise.

Investors will…