European shares retreat after Fed-inspired rally; Lundbeck slumps
* STOXX 600 ends 0.7 percent lower
* Banks lead sectoral fallers
* Lundbeck slumps after study failure (ADVISORY- Follow European and UK stock markets in real time on the Reuters Live Markets blog on Eikon - see cpurl://apps.cp./cms/?pageId=livemarkets) Adds details, updates prices)
By Danilo Masoni and Atul Prakash
MILAN, Sept 23 (Reuters) - European shares ended weaker on Friday, pulling back from two-week highs in the previous session after the Federal Reserve signalled an increasingly cautious approach to future rate hikes, with banks leading sectoral fallers.
The pan-European STOXX 600 index ended 0.7 percent lower, retreating after closing at its highest level since Sept. 9 on Thursday. It rose 2.2 percent this week, the best performance in two months, but is still down more than 5 percent this year.
"The Fed-fuelled rally that catapulted shares out of the summer doldrums this week is showing some signs of fatigue," said Jasper Lawler, Market Analyst at CMC Markets.
"The focus would now begin to switch to upcoming economic data and whether that makes a rate hike in December more or less likely."
Futures are pricing the chance of a U.S. rate rise in December at 58.4 percent, according to CME's FedWatch tool. Continuación...