European equity markets ended a volatile Friday session in the red, extending the recent selloff as rising energy prices and the resulting increase in financing costs continued to pressure profit margins. The Eurozone’s STOXX 50 fell 0.6% to 5,712, leaving it broadly unchanged for the week, while the STOXX 600 lost 0.5% to close at 596, down 0.5% over the week.
Sovereign bond yields across the bloc’s major economies climbed toward their highest levels in 15 years, reflecting persistent gains in key energy benchmarks amid war in Iran and related supply disruptions. Bank stocks deepened their slide as expectations of an ECB rate hike further compressed interest margins: Deutsche Bank shed 5.5% over the week to a nine‑month low, while UniCredit declined 4% to its weakest level since November.
Rising yields also weighed on consumer discretionary names, with LVMH dropping 4.4% during the session. Higher energy costs added to the pressure on industrial heavyweights, with Siemens, Schneider Electric, and Siemens Energy declining between 2% and 6%.
