Markets down as ECB indicated slowdown in bond purchases

On Friday European stocks lost ground and for this week were down more than 1% as investors weighed risks from stricter monetary policies after the European Central Bank indicated a slowdown of pandemic-era bond purchases.

The pan-European STOXX 600 index dropped 0.3% and was negative for four of five sessions this week as concerns remained about a slowing global economic rebound. However, defensive sectors such as healthcare and real estate had the biggest weekly declines, as investors set for a possible increase in economic growth. European stocks strengthened after the ECB emphasized it was not about to stop the money aid even though predicting higher growth and inflation for the euro zone.

European shares have lingered below their mid-August record highs because of strong earnings and recovery prospects, but major money houses are doubtful of more gains, especially in U.S. stock markets that is home to high-growth companies.

Data showed Britain's economy unpredictably slowed to a crawl in July as the Delta variant of

COVID-19 spread rapidly.

Wall Street main indexes closed lower on Friday after data showing continued U.S. inflation balanced expectations of an easing in U.S.-China tensions after a call between President Joe Biden and China's Xi Jinping.

U.S. producer prices increased steadily in August, suggesting that high inflation is expected to stay for a while, with supply chains remaining tight as the COVID-19 pandemic drags on.

The way in which central banks, especially the U.S. Federal Reserve and European Central Bank, choose to taper their economic support remains the driving force of market sentiment amid rising inflation worries.

Oil prices increased to $73 a barrel on signals of a shortage of U.S. supplies after Hurricane Ida impacted provision.

Brent crude prices increased to settle at $1.47, or 2.3%, to $72.92. The session high was $73.15 a barrel. U.S. West Texas Intermediate crude rose $1.58, or 2.3%, to $69.72. Gold was tight on uncertainty over the Fed's tapering timeline. U.S. gold futures settled 0.4% lower at $1,792.1 an ounce.