European markets open 0.7% lower; UK GDP ticks up slightly
European markets opened lower Friday, as investors assessed fresh economic data and the future path for interest rate cuts following hawkish comments from U.S. Federal Reserve Chair Jerome Powell.
The pan-European Stoxx 600 fell 0.8% in early deals, with all major bourses and almost all sectors sinking into the red.
Health care stocks shed 1.72%, tracking wider falls for global vaccine makers, as investors weighed President-election Donald Trump’s nomination of Robert F. Kennedy Jr. to lead the Department of Health and Human Services.
Tech stocks also fell 1.36%, while utilities were a sole outlier, up 0.06%.
On Friday, investors digested fresh U.K. GDP data for insight into the state of the British economy — the first reading since the Labour government’s October budget announcement.
Gross domestic product came in at 0.1% in the three months to September compared to the previous quarter. That’s below the 0.2% growth expected by economists polled by Reuters and follows an expansion of 0.5% in the second quarter of the year.
U.K. Finance Minister Rachel Reeves said Friday she was “not satisfied” with the numbers.
Earning reports come from Aegon Experian Cepsa, among others.
Across the Atlantic, speaking Thursday, Powell said that strong U.S. economic growth is allowing policymakers to take their time in deciding how far and how fast to lower interest rates.
U.S. stock futures inched lower overnight as Wall Street continued to assess the comments and the future path of the post-election rally. Asia markets, meanwhile, were mixed during Friday’s session.(Cay)
Source: CNBC
