Shares in European groups fell yesterday as strong economic data renewed fears that interest rates will continue to be hiked by central banks, while euro zone bond yields rose and the euro weakened against the dollar. Meanwhile, London-listed banking giant HSBC has generated strong interest on the back of impressive quarterly earnings growth. The pan-European STOXX 600 index fell to -0.19% yesterday on the back of the latest PMI data, which showed that economic activity in Germany and France returned to growth territory. And the reliable services industry PMI data shows that its recovery has accelerated. In Geria Epirus, the industry index for high-tech groups slipped 1.5% yesterday, while short-term government bond yields rose to their highest level in almost a decade, echoing US bond yields – the country’s business indicators unexpectedly rebounded in February. The 10-year German bond yield rose 7 basis points to 2.53%, while the corresponding US bond yield increased 10 basis points. up to 3.91%. The euro weakened 0.3% against the dollar and settled at $1.0658. In London, the FTSE 100 ended yesterday’s session down 0.46%, the DAX in Frankfurt -0.52%, the CAC 40 in Paris -0.37%, the FTSE MIB -0.68% in Milan and the IBEX in Madrid -0.31 %. “CPIs seem to be slowing down, but we have signs that both structural inflation and service-sector inflation are lingering,” said Russ Mundt, chief investment officer at AJ Bell. Goldman Sachs estimates that the European Central Bank is expected to raise interest rates three times this year, so the final interest rate this year will reach 3.5% from the original estimate of 3.25%. Investors are now focused on today’s release of US Federal Reserve minutes from its last meeting amid more subdued inflation, raising concerns that inflation has not yet cooled down enough despite aggressive increases.