European shares stretch declines after central bank-induced selloff

© Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, September 22, 2022. REUTERS/Staff

(Reuters) – European shares edged lower at the open on Friday after major central bank events through the week, including signals from the U.S. Federal Reserve that it will continue to hike interest rates, while Credit Suisse (SIX:) slid on a cash call.

The pan-European index was down 0.2% by 0716 GMT, hovering at near 20-month lows.

Interest rates were sharply hiked through the week, with the Fed delivering its third consecutive 75 basis-point increase on Wednesday and Switzerland exiting the era of negative interest rates on Thursday, with its first hike in 15 years.

Banks in Europe fell 0.9%, with Credit Suisse down 6.4% as it sounded investors for fresh cash, two people familiar with the matter said, approaching them for the fourth time in roughly seven years as it attempts a radical overhaul of its investment bank.