This is CNBC’s live blog covering European markets.
European markets were broadly lower Friday, rounding off a volatile week marked by whipsawing policy on U.S. tariffs, the latest rate cut from the European Central Bank, German fiscal reforms and a regional defense spending boost.
Investors were also reacting to key jobs data out of the U.S., which showed nonfarm payrolls rose by a less-than-expected 151,000 in February.
The regional Stoxx 600 index was down 0.6% at 1:43 p.m. in London, with mining and autos stocks leading losses.
Luxury stocks were among the worst performers, with Richemont and Burberry down by 4% and 6.5% respectively as the Stoxx Europe Luxury 10 index dropped 2.3%. The sector is expected to face challenges from U.S. import tariff hikes if the impact dampens U.S. consumer demand and leads to a rise in prices.
The Stoxx 600 has jumped between losses and gains this week amid unfolding geopolitical developments and corporate earnings. The benchmark is currently on course for a weekly loss, which would be its first of the year.
U.S. President Donald Trump on Thursday granted temporary tariff exemptions for around 50% of Mexican imports and 38% of Canadian imports until April 2. The move came a day after Trump granted a one-month tariff exemption for automakers, expected to be one of the most affected sectors; and just two days after sweeping new duties came into effect.
In Europe, market watchers are continuing to unpack the ECB’s latest quarter-point rate cut, inflation and growth projections, and messaging.
The euro area’s central bank said monetary policy was becoming “meaningfully less restrictive,” suggesting it may exercise more caution across its next meetings after enacting six cuts since last June. ECB staff macroeconomic projections raised their headline inflation forecast for 2025 to 2.3% from 2.1%, while downgrading their growth forecast to 0.9% from 1.1%.
“While forecasts still show clear direction, [ECB] communication doesn’t,” analysts at Bank of America Global Research said Thursday.
Also continuing to sway markets this week has been expectations of higher defense spending across Europe, with the Stoxx Aerospace and Defence Index up another 9% this week, its best performance for nearly five years.
The U.K. held multilateral talks last week focused on defense spending and allied Ukraine support, while European Union leaders on Thursday met in Brussels to agree to higher defense spending across the bloc, despite the opposition of Hungary.
German stocks have meanwhile broadly rallied on hopes of stronger economic growth and more spending on both defense and infrastructure after leading politicians stuck a “historic” deal on fiscal reform.
Stoxx 600 index on track for first weekly decline this year
The pan-European Stoxx 600 index was on course for its first weekly loss this year on Friday afternoon, and was down just over 1% at around 2:50 p.m. London time for the week, according to LSEG data.
The index had moved between losses and gains through the week as markets digested the latest developments in U.S. trade policy, a potential shift in German fiscal policy and a European defense spending boost. The European Central Bank also announced a further quarter point interest rate cut.
Investors were weighing the potential impact of these developments on inflation and economic growth.
— Sawdah Bhaimiya
U.S. stocks open lower
Stocks kicked off Friday’s session in the red.
The S&P 500 and Dow slid 0.2% and 0.4%, respectively. The Nasdaq Composite ticked 0.1% lower.
— Alex Harring
U.S. payroll growth totals 151,000 in February, less than expected
An attendee holds an “Entry Level Jobs” flyer at a City Career Fair hiring event in Sacramento, California, US, on Thursday, Feb. 27, 2025.
Job growth was weaker than expected in February as the Trump administration began to slash the federal workforce.
Nonfarm payrolls increased by a seasonally adjusted 151,000 on the month, better than the downwardly revised 125,000 in January but less than the 170,000 consensus forecast from Dow Jones, the Labor Department’s Bureau of Labor Statistics reported Friday. The unemployment rate edged higher to 4.1%.
— Jeff Cox
Ferragamo shares tank 18% on falling sales
Shares of Ferragamo fell 18% on Friday after the Italian luxury fashion group posted a 10.5% year-on-year decline in 2024 sales.
Revenues for the year came in at 1.04 billion euros ($1.12 billion) last year, compared to 1.16 billion euros in 2023, which the company attributed to a “complex market context).
The decline comes amid wider downturn in the luxury sector throughout 2024. Luxury stocks included Burberry, Kering and Richemont all also fell more than 4% Friday, following the Ferragamo results.
— Karen Gilchrist
Medium-term outlook for Germany has improved despite uncertainty: Goldman Sachs
Goldman Sachs sees stronger growth prospects for Europe in the coming years thanks to expected German fiscal reforms, the bank’s chief European economist, Jari Stehn, told CNBC — despite the potential for a U.S. tariff escalation ahead.
“You have, in the short term, still strong headwinds to growth in Europe from trade policy uncertainty, of course the [European Central Bank] really underscored that yesterday, they also cut their growth forecasts for this year and for next year, and we agree with that,” he said Friday.
“At the same time, you now have a very significant amount of spending in the pipeline on defense but also on infrastructure in Germany that’s going to lift growth, we think, quite significantly both in 2026 and 2027.”
Stehn added there were uncertainties around Germany, including ensuring debt brake reform is passed and how quickly spending pledges can be rolled out.
“But ultimately, that’s what we’re looking at: subdued momentum in the near term but a significantly improved outlook in 2026 and 2027,” he added.
— Jenni Reid
Euro jumps amid rate path uncertainty
The euro was 0.74% higher against the U.S. dollar at 9:55 a.m. U.K. time, after the European Central Bank on Thursday suggested it would act with caution on future interest rate decisions and said that “high trade policy uncertainty as well as broader policy uncertainty” were clouding its outlook.
Market pricing continues to indicate another half-percentage point of combined rate cuts is expected this year.
“The next [staff macroeconomic] projection round in June will be key. The ECB will be able to address the increased fiscal spending in Europe, alongside other inputs such as US tariffs, higher long-term yields and a stronger euro exchange rate,” Morgan Stanley analysts said in a note Thursday.
The greenback has meanwhile suffered steep declines this week, concurrent with a stock market sell-off, dragged down by growth fears over new U.S. tariffs.
— Jenni Reid
Europe stocks open lower
European stock markets tumbled Friday morning as investors digested U.S. tariff exemptions, a Wall Street sell-off and increased interest rate uncertainty.
The Stoxx 600 index was down 0.8% at 8:27 a.m. in London. Germany’s DAX fell 1.3%, the U.K.’s FTSE 100 dropped 0.5%, while France’s CAC 40 was 1.1% lower.
— Jenni Reid
UK house prices steady in February: Halifax
U.K. house prices were little changed in February, according to the latest index from lender Halifax.
The average house price of £298,602 ($385,260) was 0.1% lower month on month, while annual price growth was 2.9%, the same rate as in January.
“While house price growth has slowed overall, market activity remains strong and comparable to prepandemic levels, demonstrating a resilience amongst buyers that’s been evident in the face of higher borrowing costs,” said Amanda Bryden, head of mortgages at Halifax.
“While those affordability challenges persist, the ongoing shortage of housing supply coupled with sustained demand suggests property prices will continue to rise this year, albeit at a more measured pace compared to last year.”
Residential properties for sale displayed in the window of an estate agent in Windsor, west of London.
— Jenni Reid
Europe markets: Here are the opening calls
European markets are set to open broadly lower Friday, according to IG data.
The U.K.’s FTSE 100 is seen opening 48.9 points lower at 8,643 points, France’s CAC 40 80 points lower at 8,146 points, and Germany’s DAX 308 points lower at 23,136 points.
— Jenni Reid
