European Shares Little Changed As Yields Climb On Rate Worries

(RTTNews) - European stocks were little changed on Friday as Treasury yields edged up on uncertainty about the rate outlook.

The euro strengthened and regional bond yields edged higher after Bundesbank President Joachim Nagel said the European Central Bank must resist any temptation to cut interest rates early.

Nagel also said he was "skeptical" about the risk of a 'hard landing' for the euro zone economy caused by the monetary policy squeeze.

Elsewhere, Bank of England's chief economist Huw Pill told the Financial Times that it was too early to declare victory in the battle against high inflation.

In economic releases, official data showed the German economy contracted slightly in the third quarter compared with the previous three months.

GDP declined 0.1 percent sequentially, confirming a first estimate, published in late October as the country languishes in a likely recession.

The German lfo business climate index rose to 87.3 in November versus 87.5 expected. GfK's consumer confidence index improved this month, despite the ongoing cost-of-living concerns.

The pan European STOXX 600 was marginally lower at 458.22 but still remained on track for weekly gains.

The German DAX and France's CAC 40 were marginally higher while the U.K.'s FTSE 100 dropped 0.3 percent.

Miners fell, with Anglo American, Antofagasta and Glencore falling around 1 percent.

Barclays edged up slightly after reports that the lender is mulling cutting around 2,000 jobs as part of plans to cut costs by as much as £1 billion ($1.3 billion) over several years.

Telematics and data technology specialist Trakm8 Holdings tumbled 3.2 percent after declaring its half-year results.

Continental AG gained 1.6 percent and Forvia rose about 1 percent after Barclays upgraded shares of the automotive parts makers to "overweight".

China-related LVMH, Hermes and Kering were moving lower after Chinese wealth manager Zhongzhi Enterprise Group told investors it is heavily insolvent with up to $64 billion in liabilities.