The major European markets displayed a mixed performance on Friday as investors evaluated regional economic data, corporate news, and geopolitical updates. Bank stocks experienced significant declines, while real estate and retail equities saw gains.
In the UK, a rise in consumer confidence buoyed the market, with the FTSE 100 advancing nearly 0.8%. The GfK Consumer Confidence Index improved by three points to -18 in November 2024, marking its first increase in three months.
Germany’s DAX showed a slight decline, and France’s CAC 40 fell by 0.16%. Meanwhile, Switzerland’s SMI gained 0.71%, and the pan-European Stoxx 600 rose by 0.5%.
In the UK market, B&M European Value Retail surged over 4.5%, while Diploma, Barratt Developments, Vistry Group, J Sainsbury, National Grid, Endeavour Mining, and Spirax-Sarco Engineering posted increases ranging from 3% to 4%. Several other companies, including Persimmon and United Utilities, recorded gains of 2% to 3%.
Games Workshop Group Plc saw shares soar nearly 17% on optimism that strong results might elevate it into the FTSE 100 index. Conversely, prominent banks like Barclays, Standard Chartered, Natwest Group, and Lloyds Banking Group fell between 2% and 3.5%, with HSBC Holdings down nearly 1%.
In Germany, Brenntag, Sartorius, and Vonovia increased by 5%, 4.1%, and 3.7% respectively. Other companies such as Zalando and E.ON experienced growth between 1.5% and 3.2%. However, Deutsche Bank and Commerzbank decreased by 3.7% and 2.8%, while Puma and Daimler Truck Holding also saw declines.
In France, companies including Eurofins Scientific and Unibail Rodamco gained between 1% and 2%. STMicroelectronics notably rose following its announcement of a partnership with Chinese chipmaker Hua Hong. Conversely, Thales fell over 6.5% following news of a UK Serious Fraud Office investigation into alleged bribery and corruption. Additionally, Edenred, AXA, and Airbus each dropped between 1% and 1.6%, with BNP Paribas, Credit Agricole, and Societe Generale falling between 2.5% and 3%.
On the economic front, the UK's private sector activity declined in November for the first time in over a year due to waning business confidence, according to a flash survey by S&P Global. The flash composite output index declined to 49.9 in November from 51.8 in October. UK retail sales fell by 0.7% in October compared to a revised 0.1% rise in September, as reported by the Office for National Statistics, contrary to the expected 0.3% decline.
Germany's economy grew marginally in the third quarter, with GDP increasing by 0.1%, according to revised Destatis data, down from the initially estimated 0.2% on October 30. The German private sector continued to contract in November as manufacturing output remained weak, coupled with the first services activity decline in nine months, according to S&P Global’s flash survey. The composite output index decreased to 47.3 in November from 48.6 the previous month, indicating the steepest decline since February.
In France, the private sector contracted significantly since January due to sustained demand weakness impacting expectations, as revealed by S&P Global’s flash survey results. The composite output index dropped sharply to 44.8 in November from 48.1 in October. The services PMI decreased more than anticipated to 45.7 from 49.2 the previous month, while the factory PMI registered 43.2, down from 44.5 in October—the latter figure had been expected to rise to 44.6.
