European stocks fell on Friday as investors cooled on prospects for global trade developments, with losses for Swiss luxury goods group Compagnie Financière Richemont SA
and French bank Crédit Agricole SA, along with major oil companies.
The Stoxx 600
slipped 0.4% to 404.74 after closing Thursday with a gain of 0.4% to 406.55, its highest level since May 2015. Buoyed by positive U.S.-China trade developments and record highs for Wall Street stocks, the Stoxx 600 is headed for around a 1.3% gain this week.
traded flat at $1.1051.
Across regional indexes, the German DAX 30 index
fell 0.3% to 13,249, while the French CAC 40 index
eased 0.4% to 5,868.08. The FTSE 100 index
slipped 0.3% to 7,384.56.
The Dow industrials
and S&P 500
finished at record highs on Thursday, even amid reports of “fierce internal opposition” in Washington over a new accord with Beijing to cancel tariffs in stages. Stock futures indicated a slightly softer open for Wall Street on Friday.
Banks were the weakest sector in Europe, weighed by a 3.8% fall in shares of Crédit Agricole
The French banking group reported a forecast-beating gain in third-quarter net profit. But analysts at the financial services company Jefferies noted that the bank missed expectations for revenue growth in France, while revenue was just in line with forecasts on the international side.
Earnings season rolled on, with shares of Cartier parent Richemont
sinking 5.5% after reporting a rise in first-half sales, but earnings that fell short of analysts’ expectations. Sales in Asia Pacific, Richemont’s largest region, rose 7%, with strong growth in China and Korea, while the company saw a double-digit decline in the Hong Kong region amid ongoing political tensions there.
Heavily weighted oil names were also lower, as the price of crude oil decreased on Friday in line with a fall for other perceived riskier assets when questions emerged over trade deal progression between the U.S. and China. Shares of BP
and Total SA
fell over 1% each.