Europe close: Stocks mostly lower heading into Fed meeting
European shares were lower on Friday as traders bid their time ahead of next week's US central bank policy meeting.
In European news, the Bundesbank slashed its growth estimates for the euro area's biggest economy and French president Emmanuel Macron chose centrist Francois Bayrou as his new prime minister - and the country's fourth in a year.
"Earlier gains have drifted away as US Treasury yields strengthen. Yields rose to their highest levels in over two weeks as markets brace for the Federal Reserve's final meeting of the year," said IG chief market analyst Chris Beauchamp.
On the topic of Bayrou, Beauchamp added: "Macron may have found someone willing to take on the dubious honour of being prime minister, but few in the dealing rooms of the world think that the newly-appointed Bayrou has much chance of succeeding where Barnier failed, signalling more uncertainty ahead."
The pan-regional Stoxx 600 index was down 0.53% at 516.45 points.
Germany's Dax meanwhile dipped 0.10% to 20.405,92, although the Italian FTSE Mib edged up 0.09% to 34,888.79.
Ten-year German Bund yields, the euro and Brent crude oil futures were all higher alongside.
Official data earlier showed the UK economy shrank by 0.1% in October, suggesting Finance Minister Rachel Reeves faces a bigger slowdown than anticipated.
In the eurozone, industrial production stagnated in October, recording 0.0% month-on-month growth, in line with expectations.
Meanwhile in Germany, Bundesbank President Joachim Nagel said the economy will shrink this year and will stagnate over the course of 2025, adding that a potential trade war with the US could make matters worse.
In its December forecast, the central bank slashed its forecasts and projected a contraction of 0.2 % - compared with June expectations of 0.3% growth - and only a slight expansion of 0.2 % next year. In 2026 and 2027, the economy then sees somewhat stronger growth, of 0.8 % and 0.9 %, respectively.
In equity news, shares in UK-listed Tullow Oil slumped 10% on news that US oil and gas company Kosmos Energy was in "very preliminary" talks for an all-share takeover of the West Africa-focused explorer and producer.
Munich Re gained 6% as the German reinsurer said it was targeting €6bn in net profit for next year.