European stocks edged lower in early trading on Friday (September 18), following strong gains in the previous session. Data accessed at around 2:40 p.m. WIB showed the STOXX 600 index down 0.16% at 641.56. Investors continued to assess the interest rate outlook and developments in energy supplies ahead of the weekend.

Major regional indices also declined. Germany’s DAX and France’s CAC 40 fell around 0.4%, while Britain’s FTSE 100 slipped approximately 0.3% in early trading. Luxury and personal goods stocks also came under pressure. Despite the pullback, the STOXX 600 remained on track for its first weekly gain in three weeks.

Markets continued to weigh the Federal Reserve’s 25-basis-point interest rate increase to a range of 3.75%–4.00%. The central bank’s firm commitment to tackling inflation helped restore confidence in the previous session. Meanwhile, falling oil prices provided additional relief as efforts to reroute crude shipments through Oman helped ease concerns over Middle Eastern supply disruptions.

According to Newsmaker’s analysis, a sustained recovery in European equities will depend on easing energy pressures and interest rate expectations. Lower oil prices could help reduce corporate costs and support consumer purchasing power. However, renewed supply disruptions or expectations of more aggressive monetary tightening could increase pressure on stocks through the remainder of the session.