* ECB says it will take all measures to curb inflation
* Worst performing EDF on the STOXX 600 on electricity price caps
* SAP’s cloud unit sees strong demand
* STOXX 600 down 1% this week (market close updates)
Jan 14 (Reuters) – European stocks tumbled on Friday after hawkish remarks by central bank officials stoked concerns about the impact of tougher policy, as France’s EDF slumped then that the government intervened to reduce electricity prices.
The pan-European STOXX 600 lost 1.0%, while also marking its worst week since late November.
European Central Bank President Christine Lagarde said the bank is ready to take whatever action is necessary to bring inflation back to its 2% target, raising bets on a rate hike this year.
ECB Vice President Luis de Guindos also warned that the spike in eurozone inflation is not as transitory as previously thought.
Tighter monetary conditions will end pandemic-era liquidity measures, which had flooded the market with liquidity and pushed equities to record highs through 2021.
Power group EDF plunged 14.6% and was the worst performer on the STOXX 600 after France ordered the state-controlled firm to sell more of its cheap nuclear power to rivals smaller in order to limit the rise in electricity prices in the country.
Almost all sectors and regional stock indexes were in the red on Friday. Retailers were the worst performers on the day, while oil stocks were the sole gainers.
“European equities followed the falls in Asia and the United States amid expectations that a much more aggressive stance will be taken to combat soaring inflation,” said Susannah Streeter, analyst at Hargreaves Lansdown.
Industrial goods were the worst performing European sector this week, down 3.8% as investors worried about supply chain issues affecting production.
The strength in oil prices has seen oil and gas stocks outpace their peers this week with a 4.6% jump.
Geopolitical tensions have also dulled sentiment in Europe, as no breakthrough has been made in meetings between Russia and Western states, at a time when Moscow has massed more than 100,000 troops on its border with Ukraine.
“There is heightened nervousness around an escalation in tensions…as traders await the next move from diplomats,” Streeter said.
Among other stocks, German enterprise software giant SAP closed flat, even after it said fourth-quarter revenue from its cloud computing business jumped 28%.
Europe’s third-largest insurer Assicurazioni Generali fell 1.5% after news broke that chief executive Francesco Caltagirone had resigned from the board amid a row among major investors.
Silicon specialist Wacker Chemie jumped 7.3% after it said 2021 earnings were above its own target range and beat analysts’ expectations. (Reporting by Anisha Sircar in Bengaluru; Editing by Shounak Dasgupta, William Maclean)