European markets closed lower Friday as investors reacted to disappointing data prints from two of the region’s largest economies.
The pan-European Stoxx 600 provisionally closed 0.62% lower, also recording a weekly loss after three weeks in the green.
Friday’s downbeat mood followed unexpected declines in both U.K. GDP and key export data from Germany.
The U.K. economy contracted by an estimated 0.1% on a monthly basis, the ONS said Friday, with officials attributing the downturn to a decline in production output. Economists polled by news agency Reuters had projected a 0.1% rise in GDP in October.
In France, President Emmanuel Macron named Francois Bayrou his new prime minister on Friday. The announcement comes after weeks of political turmoil in the country, during which lawmakers ousted former prime minister Michel Barnier.
The French CAC 40 index had traded slightly higher following the news, but slipped in late deals and closed 0.23% lower.
On Thursday, the European Central Bank lowered its key interest rate by 25 basis points, marking its fourth and final rate cut of the year. Policymakers also signaled the possibility of more reductions in 2025.
The Swiss National Bank also cut rates on Thursday by a larger-than-anticipated 50 basis points, while Denmark’s central bank announced a 25 basis point reduction.
Central bank watchers are now turning their attention to next week and rate decisions from the U.S. Federal Reserve and the Bank of England.
Asia-Pacific markets mostly fell overnight, led by losses in China after Beijing affirmed its recent policy shifts and stressed plans to boost growth after a high-profile meeting Thursday.
U.S. stocks opened higher, though the S&P 500 remained on course for its first weekly decline in four weeks.
Europe stocks close lower
European stock markets closed broadly lower Friday, with the regional Stoxx 600 index down 0.58%.
Germany’s DAX, France’s CAC 40 and the U.K.’s FTSE 100 all ended the session down by around 0.15%.
Stoxx 600 index.
— Jenni Reid
Euro set for weekly loss vs. U.S. dollar
Euro/U.S. dollar.
The ECB was widely perceived as delivering its most dovish statements of the year to date, laying the path for further cuts in the year ahead. Market pricing was little-changed, however, with traders expecting a fall in the central bank’s key rate from 3% currently to 1.75% by September 2025.
The euro has come under pressure amid weak economic data in the euro area and expectations that the U.S. Federal Reserve will act more cautiously as it waits to see what policies President-elect Donald Trump enacts.
Analysts at Danske Bank said in a Friday morning note that the ECB decision had a “limited impact” on euro-dollar dynamics, but that a rate cut from the Fed next week could provide some support for the euro going into the end of the year along with “downside risks to the U.S. cyclical growth outlook.”
— Jenni Reid
U.S. stocks open higher
French government bond yields creep upward as Bayrou named prime minister
Journalists work outside the Élysée Palace after French president Macron named centrist Francois Bayrou as Prime Minister in Paris on Dec. 13, 2026.
Bertrand Guay | Afp | Getty Images
Yields on French government bonds ticked higher on Friday, after the country’s President Emmanuel Macron named Francois Bayrou the new prime minister of France.
At 12:13 p.m. London time, the French 10-year government bond yield was up 5 basis points at 3.017%, while the yield on bonds with a 2-year maturity was 4 basis points higher at 2.192%.
Bayrou’s appointment Friday marked the latest development in weeks of political turmoil in Paris, after lawmakers pushed back against former Prime Minister Michel Barnier’s budget and ousted him from his position.
Read the full story here.
— Chloe Taylor
Novo Nordisk down 2.6%
Containers of Ozempic and Wegovy seen at Children’s Hospital in Aurora, CO, Nov. 18, 2024.
Kevin Mohatt | The Washington Post | Getty Images
Shares of Danish pharmaceutical giant Novo Nordisk tumbled to the bottom of the Stoxx 600 on Friday, trading 2.6% lower by 11 a.m. London time.
News agency Reuters reported Friday that some British pharmacies had said Eli Lilly‘s Mounjaro were capturing as many as 80% of new customers in the U.K.’s private obesity drug market. Novo Nordisk manufactures rival drug Wegovy.
On Thursday, Novo Nordisk announced the EU’s medicines regulator would allow the firm to add information to Wegovy’s label relating to risk reduction for kidney disease-related events, following positive clinical trial outcomes.
European healthcare stocks were also trading lower Friday, after U.S. lawmakers floated new legislation this week aimed at overhauling industry business models.
— Chloe Taylor
Euro rallies against the British pound
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The euro edged higher against the British pound on Friday, gaining 0.5% by 10:40 a.m. London time to trade at around 83 pence. It marked the euro’s highest level against sterling this week.
The British currency slid against both the euro and the U.S. dollar Friday morning after a disappointing data print showed the U.K. economy contracted unexpectedly in October.
— Chloe Taylor
UK consumer confidence still weak, survey finds
Shoppers on Regent Street on Dec. 4, 2024 in London, United Kingdom.
Mike Kemp | In Pictures | Getty Images
In the latest update to its long-running Consumer Confidence Index, GfK found that British consumers were continuing to take a cautious approach to spending in December.
The December reading showed a one-point increase to bring the monthly score to -17 — not far above the annual average of -18 points.
Elsewhere, however, there was some notable improvement in sentiment, with consumers becoming more optimistic when it came to their outlook for their personal financial situations over the next 12 months.
“Consumer confidence is still far from strong but there is some room for optimism with views on personal finances over the next 12 months creeping back into positive territory,” Neil Bellamy, consumer insights director at NIQ GfK, said in a statement. “However, consumers are still thinking twice about big-ticket purchases and whether they will bring Christmas cheer.”
— Chloe Taylor
Munich Re pops 5% on profit target
Shares of Munich Re were 5.3% higher at 9:10 a.m. in London, after the reinsurance giant announced a net profit target of 6 billion euros ($6.28 billion) for 2025 and a target for group insurance revenue to bring in 64 billion euros in an “ongoing favourable market environment.”
The company is targeting 5 billion euros in profit in 2024, with full-year results set to be reported Feb. 26, 2025.
Munich Re share price
— Jenni Reid
European markets edge lower
European stocks opened lower on Friday, on the back of disappointing data prints from the U.K. and Germany.
The pan-European Stoxx 600 was down 0.18% by 8:10 a.m. London time, with healthcare and mining stocks among those firmly in negative territory.
Investors were reacting to unexpected contractions in both the U.K.’s October GDP print, and key export data from Germany.
London’s FTSE 100 index rose 0.1% shortly after the opening bell and Germany’s DAX also edged slightly higher.
Sterling was lower against the dollar, while the euro was little changed against the greenback.
— Chloe Taylor
UK economy shrinks for a second month
The U.K. economy contracted unexpectedly in October, according to data from Britain’s Office for National Statistics (ONS).
Gross Domestic Product fell by an estimated 0.1% on a monthly basis, the ONS said Friday, with officials attributing the downturn to a decline in production output. Economists polled by news agency Reuters had projected a 0.1% rise in GDP in October.
Read the full story here.
– Chloe Taylor
CNBC Pro: Want to cash in on the emerging market boom? Here are 2 of HSBC’s ‘best stock ideas’ with over 50% upside potential
A pick-up in consumer demand, improving economic growth and attractive stock market valuations have contributed to the popularity of emerging markets (EM) this year.
HSBC is sticking to its “cautiously constructive” stance on them in 2025, as U.S. President-elect Donald Trump prepares to return to office in January.
“There is no sugar coating that tariffs and a strong USD are downside risks,” the investment bank’s analysts said, as they revealed their best stock ideas.
Among their picks were two lesser-known names, both with over 50% upside potential.
CNBC Pro subscribers can read more here.
— Amala Balakrishner
European markets: Here are the opening calls
European markets are poised to open lower Friday as investors digest the European Central Bank’s latest rate cut decision, in what was a busy day for monetary policy during the previous session.
The FTSE 100 was seen opening 22 points lower at 8,287, Germany’s DAX was down 35 points at 20,391, France’s CAC was 21 points lower at 7,400 and Italy’s FTSE MIB down 38 points at 34,799, according to IG data.
— Karen Gilchrist