European Stocks Close Marginally Lower


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On Friday, European stock markets closed with slight declines as investors evaluated global interest rate forecasts and awaited Fitch’s credit rating decision for France. The STOXX 50 index finished unchanged at 5,387, while the broader STOXX 600 saw a 0.1% decrease to 555, primarily due to pressures in the pharmaceutical sector. Investor caution prevailed amid concerns about a potential credit rating downgrade for France by Fitch, linked to political instability and its potential effect on expanding deficits. Simultaneously, pharmaceutical stocks in Europe experienced a downturn after Goldman Sachs downgraded Novartis, citing increasing competition from generic brands. This led to a 3% drop in Novartis shares, with Roche, AstraZeneca, and GSK also falling by over 1%. The previous day, the European Central Bank indicated that its easing cycle has concluded, as President Lagarde remarked the institution is currently in a “good place” with growth risks appearing more balanced. Over the week, the STOXX 50 increased by 1.3%, while the STOXX 600 rose by 1%.




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