European Stocks Close Slightly Lower After Cautious Session

(RTTNews) - European stocks closed lower on Friday, weighed down by disappointing economic data from the U.K. and Germany, the political uncertainty in France, and rate hike threats from U.S. President-elect Donald Trump. The mood remained cautious with investors awaiting the Federal Reserve's monetary policy announcement, next Wednesday.

French President Emmanuel Macron appointed François Bayrou as the new prime minister, following the ousting of Michel Barnier after a no-confidence vote.

President Emmanuel Macron's appointment of François Bayrou as the new prime minister, following the ousting of Michel Barnier after a no-confidence vote, highlights the ongoing political instability.

The pan European Stoxx 600 closed down 0.53%. The U.K.'s FTSE 100, Germany's DAX and France's CAC 40 ended lower by 0.14%, 0.1% and 0.15%, respectively. Switzerland's SMI closed 0.18% down.

Among other markets in Europe, Belgium, Denmark, Finland, Ireland, Netherlands, Norway, Poland, Portugal, Russia, Spain and Sweden ended weak, although most of these markets settled just marginally down.

Austria, Greece, Iceland and Turkiye closed higher.

In the UK market, Endeavour Mining shed nearly 3%. Spirax Group, Anglo American Plc, Fresnillo, Rio Tinto, Prudential, Berkeley Group Holdings, Prudential, JD Sports Fashion, Glencore, Melrose Industries, Croda International, BAE Systems and Frasers Group lost 1 to 3%.

Rentokil Initial rallied 3.5%. Beazley gained nearly 3%. Diageo, Hiscox, Marks & Spencer, Pershing Square Holdings, Smith (DS), Next and Aviva advanced 1 to 2.5%.

In the German market, RWE, Vonovia, Bayer, Adidas, Zalando, Siemens, Puma, Sartorius, Rheinmetall, Merck, BASF and Beiersdorf closed down 1 to 2.5%.

Munich RE climbed more than 5% after the reinsurer unveiled a profit target of €6bn for 2025, with group insurance revenue expected to reach €64bn. Hannover Rueck, Volkswagan and Allianz gained 1 to 1.5%. Henkel, Deutsche Bank, Continental, BMW and Mercedes-Benz posted moderate gains.

In the French market, Vivendi, ArcelorMittal, Sanofi, Teleperformance and LVMH closed notably lower.

AXA, Renault, Stellantis, Engie, Orange, Bouygues and Orange posted impressive gains.

In economic news, Eurozone industrial production stagnated in October as growth in capital goods output was offset by falls in energy and consumer goods production, Eurostat reported Friday. Industrial output remained flat in October after declining 1.5% in September. The nil growth matched expectations.

Germany's wholesale prices decreased 0.6% year-on-year in November, slower than the 0.8% drop in October. Wholesale prices have been falling since May 2023, and the latest drop was the weakest in four months.

Germany's exports declined at the fastest pace in ten months in October, falling by 2.8% month-over-month, mainly due the double-digit fall in demand from the US and overall imports logged a marginal fall, data from Destatis revealed.

French consumer price inflation increased slightly as initially estimated in November. The consumer price index logged an increase of 1.3% annually in November, slightly up from 1.2% in October. The inflation rate came in line with the flash data published on November 29.

The UK economy contracted marginally for the second straight month in October largely reflecting the fall in industrial production, official data revealed. Real gross domestic product shrank unexpectedly 0.1% in October, the same pace of decline as in September, the Office for National Statistics reported. GDP was forecast to grow 0.1%.