Europe's STOXX 600 slipped Friday as telecom and insurance stocks dragged on the benchmark, but the index remained on track for its first weekly gain in three. The week featured rate decisions from the US Federal Reserve and the Bank of England, while a bond-market respite and receding crude prices helped risk sentiment hold up despite the pullback.
Telecoms and insurers lead the pullback
The pan-European STOXX 600 dipped 0.3% to 640.63 points by 0840 GMT, after rising more than 1% over the previous two sessions. Telecommunication stocks led the retreat, falling 2%.
Airtel Africa fell 8.7% to become the index's top decliner after Bloomberg News reported its unit Airtel Money is considering downsizing its London IPO. Elsewhere, Orange dipped 4.5% after Morgan Stanley downgraded the French telecoms company to "underweight" from "equal-weight."
Insurers also weighed on the benchmark, sliding 1.2%, with Switzerland's Helvetia Baloise and the UK's Prudential and Legal & General all down around 2% each. Food and beverage stocks lost 1.1%, and Nestle fell 1.3% after Russia seized control of the Swiss company's local assets.
Energy slips as chipmakers rally
Energy shares shed 0.6% as oil prices fell for a third day on hopes of limited Saudi supply disruptions, though crude remained above $100 a barrel. Technology shares bucked the trend, however, rising 0.6%, with chip-related companies Aixtron and Infineon Technologies leading the sector's gains.
Among individual movers, LPP climbed 6.2% after Poland's largest fashion retailer reported a 64% rise in second-quarter net profit.
A week packed with central bank decisions
Despite Friday's pullback, the STOXX 600 was on track for its first weekly gain in three, capping a week packed with interest rate decisions from major central banks, including the US Federal Reserve and the Bank of England. The Fed hiked rates for the first time in three years, while the Bank of England held rates steady, and both moves were widely anticipated.
European healthcare stocks were on track to be the week's best-performing sector, followed by insurance, while financial services and retail were set to be the worst hit. A respite in the bond market selloff this week, along with receding crude prices, helped risk sentiment despite the Fed's rate hike.
Mirabaud Asset Management's chief economist, Valentin Bissat, said: "In the coming days, it will be interesting to hear from different Fed members" as they weigh growth against inflation. Also on the radar are developments ahead of next week's meeting between US President Donald Trump and his Chinese counterpart Xi Jinping.
Source: Investing.com
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