European stocks slide but finish week higher
European stocks ended Friday’s session slightly weaker, but managed to eke out a gain for the week, amid global growth jitters, a hawkish Federal Reserve and earnings disappointments in some big corporations.
The Stoxx Europe 600 slipped 0.4%, after Thursday’s modest gain. For the week, the index gained 0.5%.
Global equities took a hit from Thursday’s Federal Reserve outcome, which saw no change in key rates, but investors were rattled by a perceived hawkish tone by the central bank. The news kept investors from cheering upbeat U.K. growth data, with London stocks bogged down by worries about China growth.
Italy crept back as a worry for Europe, after the European Commission on Thursday warned that it was concerned about the country’s debt situation, and that there was “no future” for the country outside of the common currency.
Heavily weighed energy stocks fell alongside crude oil prices U.S. crude fell into a bear market on Thursday. Royal Dutch Shell Group PLC RDS.A, ended 0.2% lower, while BP PLC finished down 1%.
The S&P 500 Index fell 0.9 percent as of 4 p.m. in New York. It rose 2.1 percent in the week for a second straight advance. The Nasdaq 100 Index lost 1.7 percent, while the Russell 2000 fell 1.6 percent. The Nikkei-225 Stock Average declined 1.1 percent. The MSCI Emerging Market Index sank 0.6 percent.
Asian financial shares performed particularly poorly following news that Beijing plans to set quotas for banks to pump credit into private companies. The offshore yuan held this week’s drop as there was little sign of an end to the U.S.-China trade war in the wake of the midterm elections.
Elsewhere, the pound weakened amid ongoing speculation over a potential Brexit deal. Emergingmarket stocks and currencies slid.
West Texas Intermediate crude dipped 0.8 percent to settle at $60.19 a barrel. It is now lower for the year. Gold futures sank 1.3 percent to $1,209.50 an ounce, hitting the weakest in a month.