FX.co ★ European Shares Muted

Both the STOXX 50 and STOXX 600 indices remained relatively stable on Friday, as investors exercised caution awaiting further developments in the trade discussions between US President Trump and Chinese President Xi. The leaders engaged in a phone call yesterday and agreed to reinstate trade negotiations, yet the lack of tangible progress left markets in a state of unease. Simultaneously, traders were anticipating the latest US employment figures. In Europe, as anticipated, the European Central Bank lowered interest rates, although President Lagarde hinted that this might signal the end of the current rate-cutting cycle. On the economic data front, Germany's export and industrial production figures fell short of expectations. On the corporate side, shares of Adidas and Puma declined 0.9% and 1.8% respectively after Lululemon Athletica announced a reduction in its yearly profit forecast. Similarly, Airbus, Volkswagen, and BMW saw declines of 0.9%, 0.7%, and 0.9%, respectively. Conversely, RWE shares rose by 0.9%, and Bayer experienced a 1% increase. Over the week, the STOXX 50 advanced by 0.7%, while the STOXX 600 increased by 0.6%.