European shares open flat as rate-hike jitters weigh

European shares opened flat on Tuesday as worries of further interest rate hikes by major central banks in the face of slowing economic growth countered support from defensive healthcare stocks.

The pan-European STOXX 600 index was flat at 459.78 points. In the previous session, the index dropped as data pointing to tepid U.S. business activity sparked profit-taking following gains in the prior week.

Hawkish comments from European Central Bank (ECB) President Christine Lagarde and Bundesbank President Joachim Nagel on Monday cemented expectations for further rate hikes from the central bank in June.


These comments come even as the U.S. money markets bet on the Federal Reserve skipping on rate hikes this month.

Rate-sensitive technology stocks fell 0.8%, leading sectoral losses for the day, while defensive healthcare stocks added 0.6%.