The pan-European STOXX 600 index (.STOXX) dropped 1.2%, led by losses in travel and leisure (.SXTP) and retail index (.SXRP), which fell 2.3% and 2.0%, respectively.
Embracer (EMBRACb.ST), the top loser on the STOXX, fell 13.8% after the gaming group raised 2 billion crowns ($182 million) in a share issue directed to institutional investors.
"Now the gap between the two main central banks is closer than two months ago as Fed has moved more towards the position of the European Central Bank (ECB)."
German industrial orders rose significantly more than expected in May, due to large scale orders of ships, spacecraft and military vehicles.
Reporting by Matteo Allievi in Gdansk and Shubham Batra in Bengaluru; Editing by Sherry Jacob-Phillips and Varun H KOur Standards: The Thomson Reuters Trust Principles.
Persons:
hawkish, Stuart Cole, Janet Yellen's, UK's, policmaker Joachim Nagel, Matteo Allievi, Shubham Batra, Sherry Jacob, Phillips, Varun
Organizations:
CAC, Equiti, Fed, European Central Bank, Treasury, policmaker, Thomson
Locations:
China, U.S, British, Gdansk, Bengaluru