Major European Markets Close Weak On Inflation Concerns, Growth Worries

(RTTNews) - The major European stocks closed on a weak note on Friday despite coming off the day's lows, as worries about rising inflation and slowing growth rendered the mood bearish.

Worries about imminent monetary tightening by central banks, including the Federal Reserve, weighed as well. Political uncertainty in Germany contributed as well to the subdued trend in the markets.

Investors also looked ahead to the upcoming meeting of Euro zone finance ministers, who are set to discuss the impact of high energy prices, among other things.

The pan European Stoxx 600 declined 0.42%. The U.K.'s FTSE 100 ended down by 0.84%, Germany's DAX shed 0.68% and France's CAC 40 edged down 0.04%. Switzerland's SMI drifted down 0.58%. The FTSE 100 shed about 0.4% in the week, while the CAC 40 and the DAX lost 1.8% and 3%, respectively.

Among other markets in Europe, Austria, Denmark, Finland, Netherlands, Russia, Sweden and Turkey closed weak.

Belgium, Czech Republic, Greece, Iceland, Ireland, Norway, Poland and Portugal moved up, while Spain ended flat.

In the UK market, Evraz declined nearly 4%. Hikma Pharmaceuticals, Scottish Mortgage, B&M European Value Retail, Smith (DS), Lloyds Banking Group, British American Tobacco, Polymetal International, BHP Group, Persimmon, Aveva Group, Intertek Group, Reckitt Benckiser, Rio Tinto, Tesco, AstraZeneca and Diageo lost 2 to 3.4%.

IAG rallied 5.3%. Intercontinental Hotels Group, Whitbread, Burberry Group, ITV, Compass Group, Informa, Pearson and Rolls-Royce Holdings gained 2 to 3.6%.

In the French market, ArcelorMittal drifted down by about 4.7%. Saint Gobain shed about 3%, while Legrand, Valeo, Danone, Dassault Systemes, Faurecia, Carrefour and STMicroElectronics lost 1 to 2%.

Credit Agricole drifted down after the lender confirmed that it is in talks with Holmarcom regarding a possible sale of its stake in Moroccan subsidiary, Crédit du Maroc.

Sodexo, Accor and Engie gained 2.5 to 3.2%. Kering, Air France-KLM, LVMH, Safran, LOreal, Airbus, Air Liquide and Thales also closed notably higher.

In Germany, Sartorius tumbled nearly 10%. Siemens, Zalando, Qiagen, Merck, Covestro, Deutsche Bank and Fresenius lost 2 to 3%.

E.ON, Vonovia, MTU Aero Engines, BMW and Puma closed with sharp to moderate gains. Daimler moved higher in volatile trade as shareholders vote on spinning off the sprawling truck division from the Mercedes-Benz luxury-car operations.

In economic news, Eurozone inflation accelerated for the third straight month and hit the highest level in thirteen years in September, advancing to 3.4% in the month from 3% in August, flash data from Eurostat showed. The rate was also above economists' forecast of 3.3%.

Core inflation that excludes energy, food, alcohol and tobacco, increased to 1.9% from 1.6% in the previous month.

Eurozone manufacturing growth weakened in September as producers report a growing toll from supply chain headwinds, IHS Markit noted.

The corresponding PMI dropped to 58.6 in September from 61.4 in August, posting the largest drop since April 2020.

Germany's retail sales rebounded in August but at a slower-than-expected pace, data published by Destatis showed. Retail sales grew 1.1% month-on-month in August, reversing a 4.5% fall in July. Economists had forecast a monthly growth of 1.5%.

On a yearly basis, retail sales growth held steady at 0.4% in August. This was much slower than the expected growth of 1.9%.

The U.K.'s manufacturing sector also saw growth slowing last month on the back of surging material and staff shortages.