European markets fell on Friday, with trading characterized by volatility as investors processed new economic indicators and the implications of potential interest rate cuts following remarks by US Federal Reserve Chairman Jerome Powell.
By mid-morning, the pan-European Stoxx 600 index was down 0.43%, reflecting mixed performance across major stock exchanges and diversified sector results. Technology stocks suffered a notable decline of 1.82%, while sectors such as mining, oil and gas posted gains of more than 1%.
Among decliners, Nordic Bavarian fell sharply, plunging 16% after announcing a drop in third-quarter revenue attributed to fluctuating demand for its vaccine. This decline contributed to a broader decline in healthcare stocks, which fell 2.3% as investors reacted to Donald Trump’s nomination of Robert F. Kennedy Jr. as Secretary of Health and Human Services. human services in the next presidential election.
In the UK, investors pored over the latest GDP data to get a sense of the economic landscape, marking the first assessment since the Labor government’s budget announcement in October. For the three months ending in September, GDP growth was reported at 0.1%, lower than the 0.2% expected by economists polled by Reuters and down from the 0.5% growth rate in the previous quarter. British Finance Minister Rachel Reeves expressed her dissatisfaction with these figures on Friday.
Earnings reports from companies like Egon and Cepsa have also played a role in shaping market sentiment.
In the United States, Powell’s comments on Thursday highlighted that robust economic growth is giving policymakers the flexibility to deliberate on the pace and size of interest rate cuts. As a result of these developments, U.S. stock futures fell overnight as Wall Street continued to assess the implications of Powell’s statements for the market’s trajectory following the recent election rally. Meanwhile, Asian markets showed a mixed response during the trading session on Friday.