Europe close: Stocks end week on a down note, despite upbeat economic data
European shares ended the last full trading week of 2022 on a down note as the prospect of continuing rate rises to stymie inflation fuelled fears of slowdown and recession.
Summing up sentiment among market participants, IG chief market analyst, Chris Beauchamp, said: "Central banks have sent a clear message (again) this week to equities, telling them that they are very much on their own, and that there is no jolly fat man in a red suit turning up to hand out presents.
"At this point, traders might settle for Jerome Powell handing out an orange or two, but even this seems too much to hope for."
The pan-regional Stoxx 600 index was down 1.2% at 424.74, with all major continental bourses lower.
Spain's Ibex 35 fared worst, giving back 1.29% to 8,112.50.
Dutch TTF gas futures were off by €17.27/MWh to €117.5/MWh.
German 10-year bund yields added seven basis points to 2.153% and euro/dollar drifted lower by 0.09% to 1.0618.
In economic news, the ongoing fall in Eurozone business activity slowed unexpectedly in December, indicating that any recession in the single currency bloc may be milder than expected, a survey showed on Friday.
The downturn in the eurozone was seen easing in December, helped by an improvement in economic conditions in Germany, according to S&P Global.
December's flash composite PMI cam in at 48.8 versus expectations of 48.0. The services PMI index was 49.1 against expectations of 48.5 and the manufacturing PMI came in at 47.8 against an expected 47.1.
In the UK, official data showed that retail sales unexpectedly fell last month, down 0.4% after a 0.9% increase in October, missing expectations for a 0.3% jump.
Sales in October had bounced back from the impact of the additional Bank Holiday in September for the Queen’s funeral.
Separately, a survey showed that consumer confidence remains at historic lows as the poor economic climate continues to weigh heavily
The latest GfK consumer confidence index was -42, up two points on November but still only seven points off September’s record low of -49.
In equity news, Tele2 drifted lower by 1% as Citigroup cut its price target on the telecom operator's stock.
Games Workshop surged after saying it had reached an agreement in principle with Amazon Content Services for Amazon to develop its intellectual property into film and television productions.
In a brief statement, Games Workshop said its intended that rights will initially be granted to develop the Warhammer 40,000 universe. The agreement will also see the company grant Amazon associated merchandising rights.
Bank stocks were up as the Federal Reserve, Bank of England and European Central Bank all raised interest rates with the Stoxx 600 sector gauge putting on 0.75%.