European markets decline as investors assess economic data and interest rates

European markets experienced a downturn on Friday, with trading marked by volatility as investors processed new economic indicators and the implications of potential interest rate reductions following remarks by U.S. Federal Reserve Chair Jerome Powell.

By mid-morning, the pan-European Stoxx 600 index had decreased by 0.43%, reflecting a mixed performance across major exchanges and varied sector outcomes. Technology shares suffered a notable drop of 1.82%, while sectors such as mining and oil and gas saw gains exceeding 1%.

Among the decliners, Nordic Bavarian fell sharply, plummeting 16% after announcing a decline in third-quarter revenue attributed to fluctuating demand for its vaccine. This decline contributed to a broader drop in healthcare stocks, which fell by 2.3% as investors reacted to Donald Trump’s nomination of Robert F. Kennedy Jr. for the role of Secretary of Health and Human Services in the upcoming presidential election.

In the UK, investors scrutinized the latest GDP figures for insights into the economic landscape, marking the first assessment following the Labour government’s budget announcement in October. For the three months ending in September, the GDP growth was reported at 0.1%, falling short of the 0.2% forecast by economists surveyed by Reuters and down from a 0.5% growth rate in the previous quarter. British Finance Minister Rachel Reeves expressed her dissatisfaction with these figures on Friday.

Earnings reports from companies such as Egon and Cepsa also played a role in shaping market sentiment.

In the U.S., Powell’s comments on Thursday highlighted that robust economic growth was providing policymakers with the flexibility to deliberate on the pace and magnitude of interest rate cuts. As a result of these developments, U.S. stock futures dipped overnight as Wall Street continued to assess the implications of Powell’s statements for the market’s trajectory following the recent election rally. Meanwhile, Asian markets exhibited a mixed response during Friday’s trading session.