UPDATE 2-European share close lower as policy tightening fears rise

Reuters

Warning: This material has been prepared by a third party company, Reuters, which is independent of Davy. Davy has not reviewed the material and accepts no responsibility for errors or omissions, or for the information or opinions contained therein. It does not constitute investment advice.

    * ECB says will take any measures to curb inflation 
    * EDF worst performer on STOXX 600 on power price cap
    * SAP cloud unit eyes strong demand
    * STOXX 600 down 1% this week 

 (Updates to market close)
    By Anisha Sircar and Ambar Warrick
    Jan 14 (Reuters) - European shares fell on Friday after
hawkish remarks from central bank officials fanned worries over
the impact of tighter policy, while's France's EDF slumped as
the government intervened to curb electricity prices. 
    The pan-European STOXX 600  .STOXX  shed 1.0%, while also
marking its worst week since late November. 
    European Central Bank President Christine Lagarde said the
bank is ready to take any measures necessary to bring inflation
down to its 2% target, driving up bets on a rate hike this year.
 urn:newsml:reuters.com:*:nL8N2TU3W2
    ECB Vice President Luis de Guindos also warned that the euro
zone inflation spike is not as transitory as earlier thought.
 urn:newsml:reuters.com:*:nL1N2TT0S3
    Tightening monetary conditions will bring an end to
pandemic-era liquidity measures, which had flushed the market
with cash and driven stocks to record highs through 2021. 
    Power group EDF  EDF.PA  plunged 14.6%, and was the worst
performer on the STOXX 600 after France ordered the
state-controlled firm to sell more of its cheap nuclear power to
smaller competitors to limit electricity price rises in the
country.  urn:newsml:reuters.com:*:nP6N2S8026
    Nearly all sectors and regional stock indexes were in the
red on Friday. Retailers  .SXRP  were the worst performers for
the day, while oil stocks  .SXEP  were the sole gainers. 
    "European stocks have taken the cue from falls in Asia and
the U.S. amid expectations there will be a much more aggressive
stance taken to combat soaring inflation," Hargreaves Lansdown
analyst Susannah Streeter said. 
    Industrial goods  .SXNP  were the worst performing European
sector this week, down 3.8% as investors fretted over supply
chain problems hitting production. 
    Strength in oil prices saw oil and gas stocks  .SXEP 
outpace their peers this week with a 4.6% jump. 
    Geopolitical tensions also dulled sentiment in Europe, as no
breakthrough was reached at meetings between Russia and Western
states, at a time when Moscow has massed more than 100,000
troops at its frontier with Ukraine.  urn:newsml:reuters.com:*:nL8N2TU1LU
    "There's increased nervousness around an escalation in
tensions ... as traders wait for the next move from diplomats,"
Streeter said.
    Among other stocks, German business software giant SAP
 SAPG.DE  closed flat, even after it said fourth-quarter revenue
from its cloud computing business jumped 28%.  urn:newsml:reuters.com:*:nL1N2TT330
 urn:newsml:reuters.com:*:nASA02XFG
    Europe's third-largest insurer Assicurazioni Generali
 GASI.MI  dropped 1.5% after announcing director Francesco
Caltagirone has resigned from the board amid a boardroom spat
between top investors.  urn:newsml:reuters.com:*:nL4N2TT455
    Silicon specialist Wacker Chemie  WCHG.DE  jumped 7.3% after
saying 2021 earnings were above its own target range and beat
analyst expectations.  urn:newsml:reuters.com:*:nASN0021QZ

 (Reporting by Anisha Sircar in Bengaluru; Editing by Shounak
Dasgupta, William Maclean)
 ((Anisha.Sircar@thomsonreuters.com))

Warning: This content may be provided by regulated and unregulated entities and is not created, reviewed or endorsed by Davy. It is provided for general information purposes only and does not constitute a recommendation or solicitation to purchase or sell any security or make any other type of investment or investment decision. Importantly, it does not constitute investment advice, as it does not contemplate the personal circumstances of any particular person or group of persons. Neither Davy nor the providers of the Third Party Content will be liable for any investment decision made based on the reliance on or use of such data, or any liability that may arise due to delays or interruptions in the delivery of the Third Party Content for any reason.