STOXX 600 set for weekly losses of over 3.5
Europe39;s retail index hits twoyear low
All eyes on U.S. nonfarm payrolls report

May 6 Reuters European stocks were on course for their worst week in two months on Friday following a carnage on Wall Street as investors feared that bigger interest rate hikes would be needed to tame decadeshigh inflation.

The panEuropean STOXX 600 index fell 1.6, with retailers suffering the biggest loss among sectors.

Europe39;s retail index slumped 2.5 to hit its lowest in two years after a string of weak earnings reports that highlighted the fallout from surging inflation, the Ukraine war and fresh round of lockdowns in China.

Adidas dropped 5.1 as it lowered expectations for 2022 sales as renewed COVIDrelated lockdowns in Greater China continue to hit the German sportswear company. 

German online retailer Zalando extended losses for a second session, down 6.2, after recording its first ever decline in quarterly sales.

U.S. stocks fell sharply on Thursday as investor sentiment cratered in the face of concerns that the Federal Reserve39;s interest rate hike this week would not be enough to tame surging inflation.

I can39;t help but think that a great deal of the reaction yesterday was the appreciation that whilst the Fed can make soothing pronouncements, they are starting from an extraordinary difficult starting point, and with limited flexibility to respond to market or economy concerns whilst they fight inflation, Deutsche Bank…