Major European Markets Close Slightly Lower

European stocks closed slightly lower on Friday with investors largely reacting to quarterly earnings results, and assessing the outlook for growth in the wake of recent economic data.

Persisting worries about tensions in the Middle East and uncertainty about the outcome of the upcoming U.S. presidential election weighed a bit on stocks.

Russia’s central bank raised its benchmark rate by larger-than-expected 200 basis points and also hinted at another hike next month as inflation expectations increased and additional fiscal spending lifted proinflationary effects. The board of directors, led by Governor Elvira Nabiullina, raised the key rate to 21% from 19%.

The pan European Stoxx 600 edged down 0.03%. The U.K.’s FTSE 100 closed down 0.25% and France’s CAC 40 ended 0.08% down, while Germany’s DAX crept up 0.11%. Switzerland’s SMI settled 0.09% up.

Among other markets in Europe, Denmark, Greece, Ireland, Russia and Spain ended weak.

Austria, Belgium, Finland, Netherlands, Norway, Portugal, Sweden and Turkiye closed higher, while Iceland and Poland ended flat.

In the UK market, Lloyds Banking Group shares tumbled more than 7%. Airtel Africa ended down 5.7% following a sharp drop in half-yearly profit.

Smith & Nephew, Barclays Group, Aviva, Melrose Industries, Barratt Developments, RightMove, Fresnillo, Entain, Intertek Group and Tesco lost 1 to 3%.

Natwest Group closed modestly higher thanks to stronger than expected earnings, and an upward revision in future earnings guidance.

Mondi climbed 2.3%. Anglo American Plc, Rio Tinto, Scottish Mortgage, Glencore, Next, Schrodders and Pershing Square Holdings gained 1 to 2%.

In the German market, Rheinmetall tumbled 3.25%. Sartorius closed down 2%. Fresenius Medical Care, Continental, Beiersdorf, E.ON, MTU Aero Engines and Munich RE lost 1 to 1.4%.

Puma, Daimler Truck Holding and Siemens Energy gained 5%, 4.5% and 3.7%, respectively. HeidelbergCement climbed 2.2%. Zalando, Porsche and Symrise ended higher by 1.3 to 1.75%.

In the French market, Vinci ended down 3.4% after the company warned that potential new French tax measures could impact profits.

Capgemini, Dassault Systemes, Accor, Edenred, Orange, Bouygues, Pernod Ricard and AXA lost 1 to 3%.

Sanofi rallied more than 2.5% after the company reported stronger-than-expected third-quarter earnings.

Renault gained more than 2%. ArcelorMittal, Hermes International, Vivendi, Stellantis, Schneider Electric, Safran and STMicroElectronics also closed higher.

On the economic front, data from Statistical Office INSEE said France’s consumer confidence decreased for the first time in six months in October, though marginally. The consumer sentiment index dropped to 94 in October from 95 in the previous month. That was in line with expectations. Further, the index remained well below its long-term average of 100.

German business confidence improved for the first time in five months in October but remained at a low level suggesting weaker economic activity, survey results from the ifo Institute showed. The business climate index climbed to 86.5 in October from 85.4 in the previous month. The score was forecast to rise to 85.6. This was the first rise in five months.

A report from the European Central Bank said Eurozone bank lending growth improved moderately in September as interest rates started to ease. The adjusted loans to the private sector rose 1.6% compared with 1.5% in August. Claims on the private sector posted a steady annual growth of 1.2% in September, the report said.

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