Europe close: Stocks slip as Basic Resources, Bank shares retreat

Europe's main stock market benchmarks ended slightly lower weighed down by losses for Basic Resources and Banks.

The Stoxx 600 edged higher by 0.01% to 373.41 as the Dax drifted lower by 0.07% to 11,990.31 and the FTSE Mibtel slipped 0.05% to 18,873.29.

The Stoxx 600's gauge of Basic Resource companies ended 1.55% lower on Friday after Chinese iron ore and steel futures weakened overnight on the back of poor Chinese data and a 'bearish' study on the steel industry out of McKinsey.

New house prices in China rose in 45 out of the 70 major cities in January, down from 46 in December, the lowest tally in a year.

As regarded the outlook for steel and its main ingredient, iron ore, McKinsey reportedly projected declining steel production every year through 2020.

By 2020 steel output would decline to 760 metric tonnes from 808mt in 2016, with demand falling from 687mt to 649mt over that same time span, it said.

The Stoxx 600 sub-index of bank shares lost 1.13%, weighed down by a fall in Barclays stock, even as JP Morgan's hit a fresh record high on the other side of the Atlantic. Nobetheless, the broader KBW index of bank shares in the States was down by 0.29%.

In the background, markets were continuing to digest the minutes of the US central bank's most recent policy meeting, released overnight, which helped push the odds of a March rate hike from the Federal Reserve implied by futures back to 32%.

Euro area's largest economy grows at quickest pace in five years

Germany's economy expanded at a 0.4% quarter-on-quarter clip over the three months to March, as expected by economists, and at a 1.8% year-on-year pace, with the latter its fastest clip in five years.

The GDP figures published by the Federal Office of Statistics confirmed an earlier estimate.

However, economists were a bit divided on the extent of the slowdown yet to come, with those at Capital Economics projecting GDP growth of 1.3% in 2017.

The same research outfit pointed to the dip in German confidence as a possible sign of the slowdown to come.

To take note of, Germany recorded a current account surplus worth 8.6% of GDP in the fourth quarter of 2016, against 8.4% in the same period of 2015.

GfK's German consumer confidence index retreated to a reading of 10.0 for March after 10.2 in February, falling very slightly below consensus of 10.1 but nevertheless remaining at a historically high level.

The survey compiler attributed the decline to uncertainty around the new US administration's policies on trade and higher inflation.

On a more positive note, the latest daily Opinionway poll revealed French independent presidential candidate Emmanuel Macron's projected lead over far-right Marine Le Pen widening to 20 percentage points (60 to 40) versus 18 points on Wednesday.

In other news, France´s business climate improved in February to its best level since mid-2011.

INSEE's manufacturing sector index rose to 107.0 from 106.0 in the month before (consensus: 106.0).

Spain's Telefonica cuts debt by more than expected

Telefonica outperformed, with its shares gaining 2.34% despite having reported a 13.7% drop in full-year 2016 net income to €2.4bn.

On the other hand, Spain's incumbent telecoms operator said net debt was cut to €48.6bn, down from the between €49.0bn to €50.0bn analysts had expected.

Shares in Barclays finished a see-saw session 2.49% lower as investors weighed its latest set of results. The lender's capital ratio increased more than forecast, although at 330m pounds its fourth quarter pretax profits undershot market forecasts.

Aerospace engineering group BAE Systems saw full-year profits rise 13% on the back of increased US military spending.

Glencore clocked in with a 48% increase in annual profits on the back of higher commodity prices.