LONDON — European markets closed lower Friday as investors digested a slew of central bank rate decisions this week and their impact on the global economy.
European markets
The pan-European Stoxx 600 index provisionally closed 1.45% lower, reversing Thursday’s upbeat performance as most sectors fell into the red.
The regional benchmark closed 1.4% higher Thursday, after the U.K.’s Bank of England and Norway’s Norges Bank both held rates steady, drawing a contrast with the U.S. Federal Reserve’s bumper rate cut a day prior.
Tech stocks in Europe lost 2.96% on Friday, while mining stocks were down 2.6%.
Auto stocks shed 3.6%, led by Mercedes, which slumped over 8%, before paring losses slightly, after cutting its 2024 guidance in light of weaker demand from China. Carmakers Volvo and Stellantis were also lower.
Shares of British fashion house Burberry fell 3.5% after Jefferies downgraded the stock to underperform from hold and lowered its price target. That comes as the company was officially removed from FTSE 100 on Friday, as its share price has floundered.
Asia-Pacific markets extended momentum from Wall Street and moved higher during Friday’s session, after both the Bank of Japan and the People’s Bank of China also stood pat on rates.
U.S. stocks opened lower after Thursday’s rally, which saw the 30-stock average closed at a new record.
Back in Europe, U.K. retail sales rose by a better-than-expected 1% in August, fresh data from the Office for National Statistics showed.