European shares steady at the end of brutal week

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June 17 (Reuters) – European stocks inched higher on Friday but were set for sharp weekly losses as a slew of interest rate hikes from major central banks fuelled worries about a sharp economic slowdown.

The pan-European STOXX 600 index .STOXX gained 0.1% by 0710 GMT, but was on course to mark a 4.7% weekly decline in what could be its worst since early March.

World stock markets were heading for their biggest weekly decline since markets’ pandemic meltdown in March 2020, hit by growing worries about a recession after rate increases in the United States and Britain were followed by a surprise move in Switzerland to quell an inflation surge. nL1N2Y31LZ

The final reading of euro zone inflation for May will be out later in the day.

Among single stocks, Britain’s biggest retailer Tesco TSCO.L slipped 0.3% after it said it was seeing early indications of changing customer behaviour due to surging inflationary pressures. nL8N2Y40U8

Spain’s Santander SAN.MC gained 1% after it named Hector Grisi as its new chief executive officer, replacing long-time executive Jose Antonio Alvarez. nL1N2Y407O

(Reporting by Sruthi Shankar in Bengaluru; Editing by Subhranshu Sahu)

((sruthi.shankar@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 6182 2787;))