European stocks open lower after Fed comments, banks drag
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March 23 (Reuters) - European stocks opened lower on Thursday, following a weak session on Wall Street a day earlier, when the Federal Reserve delivered a widely expected 25 basis-point rate hike and signalled that a pause in policy tightening could be near.
The continent-wide STOXX 600 index slipped 0.4% by 0808 GMT, after closing at its highest level in more than a week on Wednesday.
U.S. stock futures, however, stabilised following a turbulent session on Wall Street after the Fed lifted interest rate to the 4.75%-5.00% range despite the recent banking turmoil, but dropped language about "ongoing increases".
Meanwhile, U.S. Treasury Secretary Janet Yellen told lawmakers that she had not considered or discussed "blanket insurance" to banking deposits after the failure of two U.S. mid-sized lenders earlier this month.
European banks fell 1% to lead sectoral losses. Citigroup downgraded the sector, warning the rapid pace of interest rate hikes would further weigh on economic activity and lenders' profits.
Investors are anticipating further rate hikes from the central banks in the UK, Norway and Switzerland later in the day.
Among single stocks, Sanofi rose 3.9% after the French drugmaker said its asthma and eczema drug Dupixent, jointly developed with Regeneron, met all targets in a trial to treat "smoker's lung". (Reporting by Sruthi Shankar in Bengaluru; Editing by Subhranshu Sahu)
