At the close of a week shortened by holidays, European stocks experienced a modest decline on Friday. The pan-European STOXX 600 index fell by 0.2% to 509.59 but still managed to be on track for a weekly gain of 0.6%.
Germany's DAX index saw a 0.4% dip following data indicating that the country's unemployment rate remained stable in November. According to Destatis's labor force survey, the adjusted unemployment rate held steady at 3.4% for November, consistent with October's figures. The number of unemployed individuals decreased by 2,000, bringing the total to 1.52 million.
Meanwhile, France's CAC 40 index dropped by 0.8%. This came a day after reports highlighted worsening conditions in the manufacturing sectors of both the eurozone and the UK as 2024 drew to a close. France's political landscape has been marked by instability since the establishment of a new minority government. Concerns persist in the market about political factions reaching a consensus on spending and taxation strategies for the year 2025.
Companies with significant exposure to China, such as LVMH, Kering, and Hermes International, saw their shares decline between 1% and 3%. This follows China’s announcement of two new initiatives funded by ultra-long-term bonds, intended to stimulate business investment and drive consumer initiatives.
In the UK, the FTSE 100 experienced marginal losses amid subdued trading. These were mitigated somewhat by a weaker pound, influenced by data from the British Retail Consortium indicating a 2.2% decrease in footfall on UK high streets in December.
The mining sector also faced challenges, with Anglo American, Antofagasta, and Glencore declining by 1% to 2% as concerns about potential US tariffs affected copper prices, which were approaching a five-month low ahead of Donald Trump's presidential inauguration on January 20.
Wizz Air Holdings, a budget airline, saw its shares drop by 2.3% following a publication concerning its share capital structure.
Pharmaceutical company GSK experienced a slight increase after receiving approval in China for Nucala, a treatment for adults with chronic rhinosinusitis with nasal polyps (CRSwNP).
Lastly, Tullow Oil surged by over 7%. The West African-focused company announced it had received an exemption from a $320 million tax obligation related to its operations in Ghana.
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