European equities slump 2.8% on weak euro-zone data, new UK economic plan

European equities were sharply lower on Friday as investors digested a series of decisions from the central bank and a new UK economic plan

The Stoxx 600 fell 2.8% in early afternoon trading, with all sectors and major exchanges trading in the red.

Oil and gas supplies and base resources were the biggest decliners, both by more than 4%.

Thursday’s market moves come after the UK government announced a series of tax cuts as the country prepares for a recession. The pound fell 1.8% against the dollar around noon, trading at $1.1048 after the news.

The Bank of England also raised interest rates by 50 basis points on Thursday – the seventh consecutive hike – and said it believed the UK economy was already in recession.

On Thursday, the Swiss National Bank also raised its benchmark interest rate to 0.5%, a shift that will end an era of negative interest rates in Europe.

The US Federal Reserve, meanwhile, raised another three-quarters of a percentage point on Wednesday and indicated that the increases will continue to come.

Bank of England raises benchmark rate by 50 basis points

US stocks closed lower on Thursday, their third consecutive daily decline, and futures were also lower on Friday.

Asian markets, meanwhile, were in the red, while Australian stocks fell 2%.

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