European shares fall as Powell signals bigger rate hikes

(Reuters) - European shares fell on Wednesday after Federal Reserve Chair Jerome Powell opened up the possibility of more aggressive rate hikes going forward, while sportswear firm Adidas dropped on plans to cut its annual dividend.

The pan-European STOXX 600 index was down 0.3% by 8:05 GMT, hitting its lowest level in a week.

The index posted its steepest one-day fall in nearly two weeks on Tuesday after Powell, at a hearing before the Senate Banking Committee, said the central bank might need to raise interest rates more than expected and was prepared to move in larger steps to temper inflation.

Shares of Adidas fell nearly 2% after the German sportswear maker said it planned to slash its 2022 dividend to 0.70 euros ($0.7374) per share.

Symrise was down 4%, dragging the European chemicals sector, after the German flavour and fragrance maker forecast 2023 core profit margin slightly below market expectations given rising costs.

(Reporting by Amruta Khandekar; Editing by Subhranshu Sahu)