European stocks approach first weekly loss in 8 weeks

European stocks experienced a downturn on Friday amidst a broader market contraction, marking a potential shift towards the first weekly loss in eight weeks. Investors remained on the edge, anticipating key inflation data from the euro zone and eagerly awaited US jobs data, which holds the promise of providing clarity on the trajectory of monetary policy.

As of 0810 GMT, the European STOXX 600 index reported a 0.5 percent loss, signaling a weekly decline of 0.8 percent. This marks a turbulent start to 2024 after eight consecutive weeks of gains fueled by mounting expectations of easing monetary policy.

The retail and technology sectors took the brunt of the decline, each witnessing a 1 percent decrease.

Shares of Signify, the world’s largest lighting equipment maker, experienced a 1.9 percent decline following Barclays’ initiation of coverage on the company’s shares.

Endeavor Mining Company faced a substantial setback, with shares plummeting by 9.6 percent after the immediate dismissal of CEO Sebastian de Montessos.

Contrastingly, shares of the Netherlands-based pharmaceutical company Redcare surged by 3.6 percent subsequent to Berenberg upgrading the stock’s rating from “hold” to “buy.”

Investor attention is now focused on the upcoming Eurozone consumer and producer inflation reports, alongside the release of US non-farm payrolls data later on Friday. These key indicators are expected to play a pivotal role in shaping investors’ assessments regarding potential interest rate cuts by the European and American central banks in the course of the year.