With the Dow industrial average down -10.69%, the S&P down -1.36% and the NASDAQ index down -2.0%, the European declines today are a modest.
The UK’s FTSE 100 led the declines, likely weighed down by earlier reports that the UK economy unexpectedly shrank in October.
A snapshot of the closing levels shows the:
European Market Close Summary
Key Drivers for the Day:
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UK Weakness: The FTSE 100 underperformed its peers (-0.56%) after data revealed the UK GDP contracted by 0.1% in October, dampening investor sentiment despite expectations of a Bank of England rate cut next week.
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Broad Tech Pressure: The negative sentiment likely spilled over from the U.S. “Tech Wreck,” where major earnings disappointments from Oracle and Broadcom dragged down global equities.
For the trading week, the changes were mixed with France’s CAC and UK’s FTSE 100 lower, but German DAX, Spain’s Ibex and Italy’s FTSE MIB higher:
- German DAX +0.66%
- France’s CAC -0.57%
- UK’s FTSE 100 -0.19%
- Spain’s Ibex, +0.99%
- Italy’s FTSE MIB +0.19%
Key Drivers for the Week:
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Spain (IBEX 35): Outperformed peers, driven by resilience in its banking sector and utilities, adding nearly 1% for the week.
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Germany (DAX): Despite dropping -0.34% today, the index secured a weekly gain of roughly 0.66%, hitting a 2-month peak earlier in the week.
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UK (FTSE 100): Lagged significantly, ending the week in the red (-0.19%) after GDP data showed the economy shrank unexpectedly in October
This article was written by Greg Michalowski at investinglive.com.