European stocks ended Friday’s session mixed for a second consecutive day as investors digested a flurry of corporate earnings and fresh inflation data for clues on the European Central Bank’s interest-rate path. The Eurozone’s STOXX 50 slipped 0.5% to 6,130, while the pan-European STOXX 600 edged up 0.2% to a new record high of 634.
EU-harmonized inflation in France and Spain came in above expectations, whereas Germany’s reading unexpectedly eased. The overall picture reinforced expectations that the ECB is likely to keep its key policy rates on hold at its upcoming meetings.
Banking shares closed sharply lower. Santander dropped nearly 3% amid reports it faces potential defaults linked to Market Financial Solutions, which is currently in the midst of a collapse. BASF fell 2% after reporting a decline in annual sales.
Outside the Eurozone, Swiss Re advanced 3.8% after posting a strong year-on-year jump in profit, while Deutsche Telekom gained 3.6% as investors continued to assess the company’s earnings released the previous day.
