(Reuters) – European stocks fell on Thursday following the U.S. Federal Reserve’s aggressive decision to increase interest rates. This raised concerns of a possible recession in a period when inflation is at an all-time high.

The continental index dropped 0.4% to 0710 GMT. However, European stock futures rebounded overnight after Wall Street surged higher. [.N]

Retail sales fell 2.1%, with British fashion online retailer ASOS (LON) suffering a 14.3% drop after being warned that inflationary pressures are affecting shoppers’ shopping behavior.

German rival Zalando dropped 7%.

Wednesday’s Fed rate rise was 75 basis points. That is the Fed’s largest hike in interest rates since 1994. The Fed also forecasts a slower economy with rising unemployment for the coming months.

The UK blue-chip index fell 0.5% before a Bank of England policy meeting that was expected to lead to another increase in interest rates.

Roche, a Swiss pharmaceutical company, lost 0.6% when it stated that its Alzheimer’s medication crenezumab does not prevent or slow cognitive decline.