European Stocks Trim Weekly Gain on Growth Outlook, China Risk
European stocks fell on Friday as sectors exposed to China retreated, trimming their two-week advance.
The Stoxx 600 Index ended the session with 0.5% decline, with the benchmark up only about 0.2% on the week. Luxury goods makers were among the biggest laggards amid concerns over China’s economy, with the onshore yuan weakening past a key milestone.
Automakers also underperformed as some electric-vehicle models that had previously received US tax credits failed to make it into the new list under tougher rules. Financials and energy sectors were among the biggest outperformers.
A measure of US factory activity advanced for a second month in December as orders and production picked up. Still, the reading remained below 50, indicating activity continues to shrink.
European stocks have struggled to sustain a rally since mid-2024, pressured by weak regional economies and political uncertainty. Investors are awaiting clarity on US trade policies following the swearing in of President-elect Donald Trump later this month.
The region’s cyclical stocks are starting to come under pressure from weakening consumer confidence.
Source : Bloomberg
