Europe close: Stocks finish lower but off their worst levels
European shares extended losses on Friday as investors fretted about inflation and continuing turmoil in the UK following the resignation of Prime Minister Liz Truss after just 45 days in office.
The pan European Stoxx 600 index was down 0.62% to 396.29, alongside a 0.29% dip for Germany's Dax to 12,730.90 while the Ibex 35 gave back 1.29% to 7,545.60.
In another day of Westminster drama, Truss quit on Thursday after her disastrous mini-budget crashed financial markets, becoming the shortest-serving prime minister in UK history. The Conservative Party has decided that the new leader must be elected by the end of next week at the latest.
Nevertheless, stocks finished off their lows after the Wall Street Journal reported that "some officials" had begun to signal their desire to slow the pace of rate hikes soon and to stop raising them in early 2023 to see how their moves were slowing the economy.
In the background, reports cited analysts saying they believed the Bank of Japan had been intervening in foreig exchange markets to limit losses in the yen.
In equity news, Adidas shares fell 10% as the German sporting goods maker cut its full-year outlook, citing weaker demand. Puma and JD Sports Fashion were down on a readacross.
Renault shares reversed early losses to edge higher after the French car maker confirming its full-year outlook and posted a rise in quarterly sales.
Swedish telecom operator Telia fell 13% after cutting its outlook for the fiscal year.