European stocks ended Friday’s session slightly weaker, but managed to eke out a gain for the week, amid global growth jitters, a hawkish Federal Reserve and earnings disappointments in some big corporations.
What are markets doing?
Germany’s DAX 30 /zigman2/quotes/210597999/delayed DX:DAX -3.68% ended the day little changed in positive territory at 11,529.16, while France’s CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 -4.23% dropped 0.5% to close at 5,106.75. The U.K.’s FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -5.25% finished 0.5% lower at 7,105.34.
Italy’s FTSE MIB Italy index /zigman2/quotes/210598024/delayed IT:I945 -3.15% closed 0.8% lower at 19,258.11.
The euro /zigman2/quotes/210561242/realtime/sampled EURUSD +0.9425% slipped to $1.1335 from $1.1365 late Thursday in New York,
The British pound /zigman2/quotes/210561263/realtime/sampled GBPUSD +1.9912% slid to $1.2964 from $1.3061.
What is driving the market?
Global equities took a hit from Thursday’s Federal Reserve outcome, which saw no change in key rates, but investors were rattled by a perceived hawkish tone by the central bank. The news kept investors from cheering upbeat U.K. growth data, with London stocks bogged down by worries about China growth.
Italy crept back as a worry for Europe, after the European Commission on Thursday warned that it was concerned about the country’s debt situation, and that there was “no future” for the country outside of the common currency.
BBVA SA /zigman2/quotes/209653399/delayed ES:BBVA -5.34% /zigman2/quotes/204078760/composite BBVA -7.46% tumbled 5.9% into the close after Spain’s banking giant fell following a proposal by Mexico’s parliament to cut banking fees. Following the European close, Mexican President-elect Andrés Manuel López Obrador walked back promises of banking regulation.
Heavily weighed energy stocks fell alongside crude oil prices—U.S. crude fell into a bear market on Thursday. Royal Dutch Shell Group PLC /zigman2/quotes/205095589/composite RDS.A -9.42% /zigman2/quotes/206428183/delayed UK:RDSA -9.29% ended 0.2% lower, while BP PLC /zigman2/quotes/207305210/composite BP -8.48% finished down 1%.