European shares hit the skids after a firm opening, with markets across the region sharply lower.
The pan-European Stoxx 600 index edged ahead in early deals at the opening Friday on the back of a better-than-expected results from Amazon overnight and firmer oil stocks. However by midday the benchmark was down 1.2%.
Investors were also eyeing the US non-farm payrolls report later in the day.
“Inflation concerns are looming ever larger with the cost of living squeeze intensifying, as monetary policy tightening ramps up, and no let-up in soaring energy prices in sight,” said Hargreaves Lansdown analyst Susannah Streeter.
“The more aggressive stance of central banks on taming inflation has set the tone for more anxiousness about the effect of sharply rising prices on consumer confidence and corporate resilience,” Streeter said.
Oil stocks were higher, driven by a rise in crude prices as freezing weather hit the US and posed a threat to supplies.
German factory orders rose much more than expected in December, with domestic demand driving growth, according to figures released on Friday by Destatis.
Orders were up 2.8% on the month following a revised 3.6% jump in November, beating expectations for a 0.5% increase.
In equity news, shares in French care home operator Orpea fell almost 10% after it emerged that sacked chief executive Yves le Masne sold stock worth almost €600,000 after being informed of allegations that residents were abused.
Le Masne was fired on Sunday, while French authorities have opened an investigation into the for-profit group, which operates 350 homes in France.
Shares in Assa Abloy, the world’s biggest lockmaker, rose to the top of the Stoxx as the company reported fourth-quarter operating earnings slightly above market forecasts and proposed raising its annual dividend.
Sanofi shares gained after the French drugmaker posted upbeat quarterly numbers and said it still expected its Covid-19 vaccine to win approval in the first quarter and help drive further earnings growth this year.
