European Stocks Close Lower Again

(RTTNews) - European stocks closed lower on Friday, extending losses from the previous session, as concerns about political uncertainty in some major European countries, fears of a U.S. government shutdown, and potential tariffs on the European Union weighed on sentiment.

U.S. President-elect Donald Trump warned of potential tariffs on the European Union if the bloc does not cut its growing deficit with the United States by making large oil and gas trades with the world's largest economy.

In economic releases, the declining trend in German producer prices unexpectedly ceased in November, data from Destatis showed today.

Producer prices rose 0.1% year-on-year in November, reversing a 1.1% fall in the prior month.

Data out of U.K. showed British retail sales rose by a weaker-than-expected 0.2% in November as consumers hold back spending in the final months of the year.

The pan European Stoxx 600 fell 0.88%. The U.K.'s FTSE 100 closed down 0.26%, Germany's DAX and France's CAC 40 closed lower by 0.43% and 0.27%, respectively. Switzerland's SMI ended lower by 0.26%.

Among other markets in Europe, Denmark's OMXC20 tanked more than 13%. Greece, Iceland, Ireland, Netherlands, Norway, Poland, Portugal, Sweden and Turkiye closed weak.

Belgium and Spain posted modest gains, while the Russian market rose sharply. Austria and Finland ended flat.

Bank stocks were among the notable losers. Shares of automakers also traded mostly weak.

In the UK market, Severn Trent, JD Sports Fashion, Hiscox, United Utilities, ICG, Standard Chartered, Natwest Group and BT Group were the notable losers.

Synairgen shares plummeted nearly 47%. The biopharmaceutical company has announced plans to raise up to £25 million to fund the phase 2 trials of its antiviral treatment.

Frasers Group climbed 2.8%. B&M European Value Retail, Rentokil Initial, Vistry Group, Segro, Endeavour Mining Plc, Antofagasta, IAG, Unite Group, Land Securities, Fresnillo and British Land gained 1 to 2.2%.

In the German market, Deutsche Bank closed more than 2% down. Commerzbank, Munich RE, Infineon, Rheinmetall, Hannover Rueck, Zalando and Fresenius lost 0.9 to 1.7%.

Vonovia rallied about 2.5%. Siemens Energy and Volkswagen both gained nearly 2%.

In the French market, Thales, Airbus Group, ArcelorMittal, AXA, Pernod Ricard, Dassault Systemes and Carrefour closed notably lower.

Crdit Agricole ended lower by about 0.5% after the bank announced the acquisition of Santander's 30.5% stake in CACEIS, its asset servicing subsidiary.

Vivendi gained nearly 2.5%. Renault climbed about 1.5%, while Unibail Rodamco, Teleperformance, Hermes International, LVMH and Accor gained 0.6 to 1%.

UK budget deficit narrowed notably in November as the interest payable on government debt decreased, while tax receipts increased from a year ago, the Office for National Statistics said.

Public sector net borrowing decreased GBP 3.4 billion to GBP 11.2 billion in November. This was the lowest November borrowing since 2021.

France's producer prices in the domestic market fell 5.2% on a yearly basis, though slower than the 6% decline in October. Further, prices decreased for the twelfth successive month. Month-on-month, producer prices in the home market increased at a faster pace of 3.2% in November versus a 0.9% gain in October.

UK car production posted its sharpest decline for the month of November since 1980 largely reflecting weaker global demand, data published by the Society of Motor Manufacturers and Traders showed on Friday. Car production declined 30.1% on a yearly basis in November. This was the ninth consecutive decline.