European Markets Close Mixed as Oil Tops $114 and Earnings Shape Trade

what happened

The major European exchanges closed mixed on Friday, while most other markets on the continent finished notably lower. Investors reacted to a wave of corporate earnings and fresh regional economic data, according to dpa-AFX. Higher oil prices and tech weakness, driven by doubts about returns on AI investments, weighed on sentiment. The Stoxx 600 fell 0.36%, Germany's DAX lost 0.85%, France's CAC 40 was flat and the FTSE 100 gained 0.07%.

Brent front-month futures climbed above $114 a barrel, rising about 3%, which raised concerns about inflation and a slowdown in growth. NatWest Group shares tumbled nearly 9% after profit attributable to ordinary shareholders fell 4.1%. AstraZeneca rallied 7% on higher-than-expected profit, while BP edged up after reporting $8.46 billion in profit, supported by strong refining margins.

In Germany, flash data from Destatis showed GDP grew 0.2% quarter on quarter in the third quarter, above the 0.1% forecast. Import prices rose 10.4% year on year, and unemployment held at 6.4%, its highest level since 2020. In France, GDP fell 0.1% in the third quarter, while annual inflation accelerated to 3.4% in October.

why it matters

Brent above $114 raises the risk of higher inflation and slower growth in Europe, which limits appetite for risk. Energy producers tend to benefit from such prices, while banks and industrials are more sensitive to weak growth and interest rate expectations.

market impact

Oil and European banks: expensive crude weighs on risk appetite, banks react to earnings and growth.

• ▲Brent pressure up — prices rise on inflation concerns and support from strong refining margins
• ▼European banks pressure down — weak NatWest profit and growth worries pressure the sector

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instruments