European Stocks Close Lower Again On Rate Hike Concerns, Growth Worries

(RTTNews) - European stocks closed lower on Friday, extending recent losses, as interest rate hikes by several central banks, and some disappointing economic data weighed on sentiment.

The Bank of England, the European Central Bank, Norges Bank and the Swiss National Bank, have all raised interest rates, and some of these banks have signaled more hikes in the coming months.

The Federal Reserve has also hinted at further policy tightening to rein in inflation.

The pan European Stoxx 600 ended 0.34% down. The U.K.'s FTSE 100 ended lower by 0.54%, Germany's DAX tumbled 0.99% and France's CAC 40 drifted down 0.55%. Switzerland's SMI bucked the trend and gained 0.34%.

Among other markets in Europe, Austria, Belgium, Denmark, Finland, Ireland, Netherlands, Norway, Poland, Portugal, Russia, Spain and Sweden ended with sharp to moderate losses.

Czech Republic edged up marginally, while Greece, Iceland and Turkiye closed higher.

In the UK market, Ocado Group ended 5.32% down. Smith (DS), IAG, Persimmon, JD Sports Fashion and Anglo American Plc declined 3 to 4.2%.

Glencore, Frasers Group, Antofagasta, Barratt Developments, Whitbread, Segro, Rio Tinto and Bunzl also ended sharply lower.

GSK climbed nearly 5% after settling a Zantac suit in the U.S. to avoid a protracted legal fight. Croda International, Convatec Group, British American Tobacco, Pearson, Vodafone Group, Imperial Brands and Halma gained 1 to 2.05%.

In the German market, Siemens Energy plunged more than 37%. The German company, which supplies equipment and services to the power sector, withdrew its profit guidance for fiscal year 2023 due to Siemens Gamesa citing a substantial increase in failure rates of wind turbine components.

Commerzbank lost nearly 6%. Infineon shed almost 4%. Adidas, Sartorius, Siemens, Vonovia, Porsche, Deutsche Bank, Continental and RWE lost 1 to 2.5%.

Fresenius Medical Care rallied about 3.25%. MTU Aero Engines, Symrise, Covestro, Siemens Healthineers, Deutsche Boerse and Henkel gained 1 to 1.7%.

In Paris, Eurofins Scientific lost about 3%. STMicroElectronics, Kering, WorldLine, BNP Paribas, Credit Agricole, Veolia, Vinci, Unibail Rodamco and LVMH lost 1 to 2.5%.

Orange climbed about 1.35%. AXA, Sanofi, Carrefour, Renault and Teleperformance also closed higher.

On the economic front, UK retail sales logged an unexpected growth in May as bank holidays and warm weather boosted demand for outdoor-related goods and summer clothing.

Despite high inflation, British consumer confidence rose for the fifth consecutive month in June to hit a 17-month high, a closely watched survey revealed Friday.

Retail sales grew at a pace of 0.3% in May from April, the Office for National Statistics reported. This was in contrast to the expected fall of 0.2%. Nonetheless, the pace of growth slowed from April's 0.5% increase.

The euro area private sector growth moved close to stagnation after the brief growth revival in the spring, survey results from S&P Global showed. The composite output index fell to 50.3 in June from 52.8 in May. This was the lowest reading since January and also remained below economists' forecast of 52.5, suggesting a considerable loss of growth momentum.

The UK private sector expanded for the fifth straight month in June albeit at the slowest pace in three months as the upturn in services activity was largely offset by the contracting manufacturing sector, flash survey results from S&P Global showed.

The Chartered Institute of Procurement & Supply flash composite output index dropped to 52.8 in June from 54.0 in May.