European Stocks Close Marginally Lower
European stocks closed marginally lower on Friday as markets continued to assess the outlook on global rates and awaited Fitch's credit rating for France. The STOXX 50 index closed flat at 5,387 and the pan-European STOXX 600 eased 0.1% to 555, weighed by the pharmaceutical sector.
Investors were cautious ahead of the possible downgrade to the French credit rating by Fitch due to political instability and its impact on widening deficits. In the meantime, pharmaceutical stocks in Europe sank after Goldman Sachs downgraded Novartis on rising competition from generic brands, pressuring its shares by 3% and driving Roche, AstraZeneca, and GSK to drop over 1%.
Yesterday, the ECB signaled its easing cycle is complete, with President Lagarde noting the bank is now in a “good place” and that growth risks appear more balanced. On the week, the STOXX 50 gained 1.3% and the STOXX 600 advanced 1%.
Source: Trading economi