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European markets opened lower on Tuesday as investors weighed the outlook for interest rates in 2023.

The Stoxx 600 fell 0.4% at the open, with all sectors and majors opening in negative territory. Travel and leisure and technology stocks led the losses, both down 1.2%.

Last week, the European Central Bank raised its key interest rate from 1.5% to 2% and said it would try to reduce its balance sheet by about 15 billion euros ($15.9 billion) every month from March 2023 until the end of the second quarter. The ECB said rate hikes should continue at a “significantly sustained pace”.

The Bank of England and the Swiss National Bank followed a similar tone and also opted for 50 basis point hikes in line with the US Federal Reserve’s decision last Wednesday. Fed Chairman Jerome Powell also noted that the central bank’s efforts to curb inflation are far from over, and said policymakers “need to stay at it.”

Asia-Pacific markets traded lower, with larger Chinese markets leading losses in the region despite government pledges to stabilize the economy in 2023.

U.S. stock futures fell on Tuesday morning, reversing course after the Bank of Japan said it would widen its yield target range.

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