European markets closed in the red on Friday, wrapping up a week marked by corporate earnings reports and fresh interest rate cuts from the U.S. Federal Reserve and the Bank of England. The pan-European Stoxx 600 index slipped 0.66%, with declines across most sectors and major exchanges. Mining stocks took the biggest hit, dropping 4.2%, while travel and leisure stocks managed a modest gain of 0.8%. Over the week, the Stoxx 600 posted a 0.19% decline.
Among the biggest movers, UK homebuilder Vistry Group saw shares plummet by 15% after issuing a profit warning, citing a slowdown in demand and higher borrowing costs. In Germany, the DAX index fell 0.8%, erasing some gains from the previous session. The decline followed a shakeup in German politics, as Chancellor Olaf Scholz dismissed Finance Minister Christian Lindner on Wednesday, ending the country’s three-way coalition government. Scholz appointed a successor the next day, and the move has raised the prospect of a no-confidence vote and possible early elections.
The markets also reflected investor caution following this week’s historic U.S. election, with President-elect Donald Trump’s win fueling speculation about potential policy shifts. In Asia, markets were mixed after China announced an additional allocation of 6 trillion yuan ($840 billion) to help local governments address hidden debt.
On Wall Street, U.S. stocks ticked higher, with both the S&P 500 and Nasdaq Composite hitting new records amid a post-election rally. Investors will be closely watching for further developments in both European political movements and U.S. fiscal policy as the year-end approaches.
