Europe close: Markets end choppy session in the red on Black Friday
European equities ended the week on a downbeat note, after a choppy session dragged markets lower as Chinese stocks slumped.
The benchmark Stoxx Europe 600 closed down 0.18%, while Germany’s DAX slid 0.24% and France’s CAC 40 fell 0.32%.
As of 1643 GMT, the euro lost 0.12% against the dollar, was broadly flat against the yen and gained 0.26% against the yen, while Brent crude lost 1.04% to $44.99.
With the US markets open only half day following Thanksgiving Day, investors had very little economic data to analyse.
The European Commission’s index of executive and consumer confidence rose from an upwardly revised 105.9 in October to 106.1 in November, the highest reading since May 2011.
“The continued improvement in euro-zone sentiment is an encouraging sign that confidence in the region has not been damaged by fears about a sharp slowdown in China,” said Jessica Hinds, European economist at Capital Economics.
“However, looking into 2016, we would still stress the downside risks to the recovery, as the tailwinds from the weaker euro and lower oil price fade.
“Either way, GDP growth is unlikely to be fast enough to bring headline inflation swiftly back to 2%”
The Shanghai Composite suffered its worst drop in three months, tumbling 5.5% as it emerged several brokerages in China were being investigated for alleged violation of securities regulations.
European stocks followed suit at the open before momentarily clawing their way back up on rising expectations of ECB action and after data from the European Commission showed confidence in the euro bloc hit its highest level in over four years in November.
Meanwhile, investors were looking ahead to the 3 December ECB meeting.
“European indices have maintained their healthy aspect of late, on expectations that Mario Draghi will put some more firepower behind his pledge to do ‘whatever it takes’ to save the Eurozone,” said IG’s senior market analyst Chris Beauchamp.
A symbolic interest rate cut could help as well, and it is likely that continental stocks will continue to gain in the first half of the coming week.”
In company news, Altice shares gained 3.71% after the telecommunications company secured the rights to broadcast the English Premier League in France and Monaco for three years.
Volkswagen declined 0.37% after the embattled car maker said it has identified about €1.9bn (£1.34bn) in savings to soften the blow from fines and recalls originated by the vehicle emission scandal.