(Bloomberg) — European equities declined, snapping their longest record-setting streak since 1999, after U.S. Federal Reserve officials were more hawkish than expected, speeding up their pace of policy tightening.

The Stoxx 600 Index retreated 0.1% by the close in London, with miners among the biggest decliners as base metals dropped, with copper heading for its worst week since the start of the pandemic on the stronger U.S. dollar. Banks gained with rising bond yields as they benefit from the prospect of higher rates.

Travel Shares Climb; Halma’s Strong Run Ends: EMEA Equity Movers

Europe’s main benchmark fell for the first time in 10 sessions from its record high after the Fed signaled two rate increases by the end of 2023 from near zero now, with Chair Jerome Powell saying there’s a risk inflation will be higher than expected. Officials have also begun a discussion about scaling back bond purchases.

Fed Sees Two Rate Hikes by End of 2023, Inches Toward Taper

“The Fed was slightly more hawkish than expected,” said Julien Lafargue, chief market strategist at Barclays Private Bank. “While still under pressure in absolute terms, European markets could be relative winners as a weaker euro and higher bond yields should support heavyweight exporters and financials, respectively.”

Among individual stocks. Banco Bilbao Vizcaya Argentaria SA rose 1.7% after a Deutsche Bank AG analyst said in a note that the chief financial officer’s message at a sell-side analysts meeting “had quite an upbeat tone, even more optimistic than during first-quarter earnings.”

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