European stock markets closed slightly lower Friday, erasing gains through the morning and previous session.
The Stoxx 600 index provisionally ended 0.3% lower, with major bourses and sectors pointing in opposite directions. Mining stocks led losses, down 1.4%, while technology stocks rose 0.6%.
The World Economic Forum in Davos, Switzerland came to a close after drawing a raft of business leaders, politicians, central bankers and campaigners. Read CNBC’s top quotes from the event here.
Broadly, the messaging from monetary policymakers has been that good progress has been made on bringing inflation to 2%, but that market pricing for a cut from the European Central Bank as soon as March or April may be premature. This appeared to sour sentiment, as investors pared back bets on a spring cut.
Attention now fully returns to data releases and corporate earnings updates for the fourth quarter, along with full-year guidance.
U.K. retail sales disappointed Friday, coming down by 3.2% in December, significantly more than expected. It was the largest monthly fall since January 2021, when pandemic measures restricted sales, the Office for National Statistics said.
Stateside, the U.S. Congress passed a bill to prevent a government shutdown, extending crucial funding through to March. U.S. stocks rose on Friday. The technology sector drove a rally Thursday, after Bank of America analysts upgraded their Apple rating to “buy.”
Asia-Pacific stocks were also higher, with TSMC surging and Japanese inflation cooling to its lowest level since June 2022.