European stocks closed lower on Friday, with earnings and the state of the global economy keeping sentiment on edge.
The benchmark Stoxx 600 ended down 0.8%, with most sectors and major bourses in negative territory. Healthcare stocks slipped 2.9% to lead losses, while chemicals stocks climbed 0.8%.
The pan-European index has had a muted week overall but is heading for its worst monthly performance since Sept. 2022, according to LSEG data.
Company results have caused big movements in individuals stocks. NatWest plunged as much as 17% near the open, before paring losses and ending the session down 11%. The bank reported third-quarter results that showed a lower net interest margin, while the U.K.’s Financial Conduct Authority said Friday morning it had found “potential regulatory breaches” in its report into a banking account scandal that ousted NatWest CEO Alison Rose.
Earlier in the week, Deutsche Bank gained on a forecast beat as Barclays tumbled after it warned of cost-cutting charges ahead.
Investors also remain focused on central bank messaging on “higher for longer” rates and economic indicators as bond yields remain elevated. U.S. gross domestic product grew by 4.9% in the third quarter, ahead of estimates, sparking stock market jitters.
The European Central Bank on Thursday held interest rates steady after an unprecedented run of 10 hikes. It repeated messaging around rates being at the right levels to bring inflation to target if held for a “sufficiently long duration.”
ECB President Christine Lagarde told CNBC in a press conference that the bank had not discussed when the first rate cut may come, and to do so would be “totally premature.”
“For the moment we are saying we are steady, we have to hold,” Lagarde said.
Asia- Pacific stocks were broadly lower despite mainland China bucking the trend, while U.S. stocks were mixed.