The FTSE 100 slipped on Friday, reversing earlier gains, after UK GDP data showed the economy contracted by 0.1% in October. This unexpected decline marked the second straight monthly drop and fell short of expectations for modest growth. The weak data fuelled hopes for earlier rate cuts from the Bank of England next year. Consumer confidence also remained subdued in December, with households cautious about spending on costly items ahead of the holidays. Miners led the losses, with Anglo American, Fresnillo, Glencore, and Rio Tinto dropping between 1.5% and 2.5%. Tullow Oil shares plunged over 6% after reports of early takeover talks with US-based Kosmos Energy. Meanwhile, Diageo continued its winning streak, rising nearly 2% for a fifth straight session.
On Friday, the S&P 500 closed mostly flat, while the NASDAQ gained 0.1%. The Dow, however, dropped 86 points, extending its losing streak to seven sessions, marking its longest stretch since 2020. Losses in major tech stocks like Nvidia (-2.2%), Meta (-1.6%), and Amazon (-0.6%) weighed on the market, while Tesla saw a 4.3% surge, closing record high of $436.23. Broadcom surged 24.4%, hitting a $1 trillion market cap after reporting a 220% increase in AI-related revenue, exceeding expectations. This boost lifted semiconductor stocks, including Marvell (+10.8%) and Taiwan Semiconductor (+5%) which booked strong gains. The broader market showed mixed performance, with concerns over the Federal Reserve’s upcoming policy decision and economic conditions limiting further gains. For the week, the S&P 500 was on track for a 0.7% decline, the Dow for a 1.8% drop, while the NASDAQ managed a 0.3% gain, reflecting broader economic uncertainty.
The DAX closed near the flatline at 20,405 on Friday, remaining near the record touched this week, led by 5.5% gain in shares of Munich Re after the company announced a €6 billion net profit target for next year. Hannover Re and BMW also closed over 1% higher. Meanwhile, traders continued to assess Europe’s economic and monetary outlook. The ECB reduced interest rates as expected and reiterated its meeting-by-meeting approach to decision-making, while also lowering inflation and growth forecasts. In addition, the economic conference in China ended without specific details on the policies that authorities will adopt to spur consumption and growth. On the week, the DAX was up 0.1 %.< /p>
