Investing.com — European markets traded in a mixed fashion Friday as investors digested regional economic weakness in the wake of the European Central Bank’s latest interest rate cut.
At 03:20 ET (08:20 GMT), Germany’s DAX gained 0.3% and the UK’s FTSE 100 was rose 0.1%, while France’s CAC slipped 0.1%.
UK economy contracts again
The UK economy shrank by 0.1% in October, according to data released earlier Friday, marking its second consecutive monthly contraction, and cane as a surprise as a minor rebound from September’s weakness had been expected.
The contraction adds to concerns about the region’s economic outlook as businesses and households navigate persistent inflationary pressures and elevated borrowing costs.
At the same time, German exports fell by 2.8% in October, more than expected and an indication that the long-awaited recovery in external demand has been delayed.
Consumer prices in France were up 1.7% year-on-year in November, in line with its preliminary reading published late last month.
ECB and other central banks slash interest rates
The European Central Bank on Thursday announced a 25-basis-point interest rate cut on Thursday, its fourth this year, and signaled the potential for more reductions in 2025.
Elsewhere, the Swiss National Bank surprised markets with a larger-than-expected 50-basis-point cut, while Denmark’s central bank trimmed its rates by 25 basis points.
Oil prices steady amid supply and surplus concerns
Oil prices stabilized on Friday as markets balanced fears of supply disruptions from tighter sanctions on Iran and Russia against expectations of a comfortable supply outlook.
At 03:20 ET Brent crude futures edged up 0.3% to $73.60 per barrel, while U.S. West Texas Intermediate crude rose 0.3% to $70.23 per barrel.
Sanctions targeting two of the world’s largest oil producers have raised concerns about potential supply constraints.
However, the International Energy Agency (IEA) stated on Thursday that it expects the oil market to remain well-supplied through 2025, despite anticipating increased demand.
