off-the-wire

Europe's real estate sector knocked by rate hike expectations

Kitco Media
By Reuters
Published:
Updated:
Reuters
LONDON, March 22 (Reuters) - Europe's STOXX real estate sector fell to a five-month low on Wednesday amid expectations both the Federal Reserve and Bank of England (BoE) will raise interest rates this week.


Tightening financial conditions are set to weigh further on the battered sector, which sharply underperformed the pan-European STOXX 600 index on Wednesday.


The real estate sector fell 3.6% in its biggest daily drop since December. The STOXX 600 rose 0.4% at 1408 GMT.


Aroundtown shares were the biggest fallers in Europe, down 10% on the day amid concerns the Luxembourg-based company may cancel its dividend, according to two traders.


Surging UK inflation data released on Wednesday raised the chances of a 25 basis point BoE rate rise, when it meets on Thursday. The Fed is also expected to raise rates by 25 bps later in the day.
(Reporting by Joice Alves and Danilo Masoni)

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