(Reuters) - European stocks slumped to three-week lows on Tuesday as a resurgence of COVID-19 cases and rate hike concerns knocked sentiment ahead of flash readings on euro zone business activity.
The pan-European STOXX 600 dropped 1% by 0815 GMT, after Asian markets followed Wall Street lower on Federal Reserve Chair Jerome Powell's renomination, which buoyed bets on U.S. rate hikes in 2022. [MKTS/GLOB]
Tech stocks plunged 2.5% as prospect of a high-rate environment dented appeal of the high-growth sector.
Travel stocks slipped 0.9% after the United States issued an advisory against movement to Germany and Denmark due to rising COVID-19 cases, while oil stocks slid 0.3% tracking a dip in crude prices on growing expectations that the U.S., Japan and India will release crude reserves to tame prices.[O/R]
Overall, growing nerves around a fourth wave of COVID-19 infections stalling European economic recovery at a time when central banks are planning the withdrawal of monetary support pulled investors out of equities.
Germany's Thyssenkrupp (DE:TKAG) slumped 6.9% on news that Swedish activist fund Cevian is placing a 6.9% stake in the firm, Refinitiv news service IFR reported.