European Stocks Close Lower
European stocks extended their losses on Friday as markets continued to assess the outlook on European interest rates and growth.
The Eurozone’s STOXX 50 closed marginally below the flatline at 4,964 and the pan-European STOXX 600 lost a sharper 0.6% to close at 516. Yesterday, the ECB reduced interest rates as expected and reiterated its meeting-by-meeting approach to decision-making, while also lowering inflation and growth forecasts. In addition, China’s Economic Work Conference ended without specific details on the policies that authorities will adopt to spur consumption and growth, adding to skepticism on future support.
On the political front, French President Macron nominated Francois Bayrou to be the new prime minister and ease political risks that have been pressuring French assets. On the corporate front, LVMH, Sanofi, and Siemens dropped more than 1%. On the other hand, insurers bounced from yesterday’s losses with Allianz, AXA, and Munich rising sharply.
Source: Trading Economics
