European shares fall on growing inflation fears; SAP cloud sales shine

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Jan 14 (Reuters) – European shares slipped on Friday after hawkish remarks from U.S. central bank officials fanned worries about the impact of tighter monetary conditions, while SAP reported upbeat quarterly revenue for its cloud business database.

The pan-European STOXX 600 shed 0.7percent, tracking weaker global markets amid nervousness after Federal Reserve Governor Lael Brainard became the latest and most senior U.S. central banker to signal that rates will rise in March to combat inflation.

All sectors were in the red, with tech stocks leading losses with a 1.3percent drop, while bank stocks were among the slimmest decliners.

German business software giant SAP climbed 1.9percent, and was among the best performers on the STOXX 600, after saying fourth-quarter revenue from its cloud computing business jumped 28percent.

Europe’s third-largest insurer Assicurazioni Generali dropped 0.6percent after saying director Francesco Caltagirone has resigned from the board amid a boardroom fight between top investors.

Silicon specialist Wacker Chemie jumped 3.8percent after saying 2021 earnings were above its own target range and beat analyst expectations.

Power group EDF plunged 23.4percent after France ordered the state-controlled firm to sell more of its cheap nuclear power to smaller competitors to limit the increase of electricity prices in the country. (Reporting by Anisha Sircar in Bengaluru; Editing by Shounak Dasgupta)

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