European equities experienced a downturn on Friday due to the looming threat of a U.S. government shutdown. Additionally, President-elect Donald Trump issued a warning to the European Union, suggesting possible tariffs on the bloc unless it addresses its growing trade deficit with the U.S. by engaging in substantial oil and gas transactions with America.
On the economic front, data from Destatis revealed an unexpected halt in the declining trend of German producer prices in November. Producer prices saw a slight year-on-year increase of 0.1% in November, a turnaround from the 1.1% decrease recorded in the previous month.
In the United Kingdom, data indicated a modest rise in retail sales by 0.2% in November, falling short of expectations, as consumers appeared cautious in their spending during the year's final months.
The pan-European STOXX 600 index fell by 1%, landing at 501.38, its lowest point in nearly a month, and appeared headed for its most significant weekly decline since early September. The German DAX dropped 1.1%, France's CAC 40 declined by 1.2%, and the U.K.'s FTSE 100 decreased by 0.6%.
Leading the losses were banking stocks, with Commerzbank, Deutsche Bank, BNP Paribas, and Barclays all registering declines of 2-3%. Credit Agricole fell by 1.6% after announcing its acquisition of Santander's 30.5% stake in CACEIS, its asset servicing arm.
Among miners, Anglo American, Antofagasta, and Glencore each declined approximately 1%. Meanwhile, GSK experienced a slight dip despite announcing positive results from its FIRST-ENGOT-OV44 phase III trial evaluating Zejula and Jemperli for advanced ovarian cancer treatment.
On the upside, ITM Power surged by 4.1%, boosted by securing a contract for a green hydrogen project within the EU.
Conversely, Synairgen's shares plummeted by 37% following news of its plan to raise up to £25 million to support phase 2 trials of its antiviral therapy.
Idorsia faced a substantial hit, with shares dropping by 45% after announcing delays in a rights agreement for its hypertension medication, Tryvio.
Delivery Hero SE, a prominent German food delivery service, saw its shares fall by 1.6% after announcing the appointment of Marie-Anne Popp as its Chief Financial Officer, effective January 2025.
Automotive giants BMW, Mercedes Benz, and Renault each saw stock declines in the range of 1-2% amidst the broader market downturn.
