European shares fall as US rate cut expectations wane; UK fiscal worries resurface

European shares fell on Friday, as hawkish commentary from U.S. policymakers dampened expectations of an imminent interest rate cut, even as the benchmark STOXX 600 index registered its strongest weekly performance since late September. The pan-European STOXX 600 ended down 1% to 574.81 points, with banks down 2.4%. Macro developments in the U.S. have been in the spotlight this week and investors were hopeful that the resumption of data releases would point to a weaker economy and give the Federal Reserve reason to lower borrowing costs in December. However, those expectations were pared after a growing number of Fed policymakers signalled caution on further easing. Additionally, technology stocks came under renewed selling pressure. "If indeed (US markets are) in bubble territory and the