European stocks slip as post-Fed rally fades, retailers drag

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June 16 (Reuters) – European stocks slipped on Thursday after the U.S. Federal Reserve’s decision to raise interest rates aggressively fuelled concerns about a potential recession at a time when global economies are facing sky-high inflation.

The continent-wide STOXX 600 index .STOXX dipped 0.4% by 0710 GMT, even though European stock futures recovered overnight after Wall Street rallied to close higher. .N

The retail sector .SXRP fell the most and was down 2.1% as British online fashion retailer ASOS ASOS.L slumped 14.3% after warning inflationary pressures were affecting shopping behaviour. nTUCBH9VLS

German rival Zalando ZALG.DE dropped 7%.

The Fed on Wednesday raised its target interest rate by 75 basis points, its biggest rate hike since 1994, and projected a slowing economy and rising unemployment in the months to come. nL1N2Y12O3

UK’s blue-chip FTSE 100 .FTSE fell 0.5% ahead of a Bank of England policy meeting expected to result in another interest rate hike. nL8N2Y13AZ

Swiss drugmaker Roche ROG.S slipped 0.6% after it said its Alzheimer’s medicine crenezumab did not slow or prevent cognitive decline in people. nL8N2Y30MO

(Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta)

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