European Stock Markets Give Up Gains - Focus Turns to Upcoming Central Bank Decisions

In a split second of the financial world's heartbeat, European stock indices felt compelled to relinquish their previously made gains at the end of trading on Friday. Investors' eyes were particularly focused westward where the New York stock exchanges slipped further into the negative in light of weak US economic data. It is entirely possible that the unrest at the futures markets exerted additional pressure on price development. The same applies to the high level of expectation toward the monetary policy direction from various central banks, especially the Fed meeting next Wednesday. In a day and week in review, the EuroStoxx 50 finished marginally lower and yet recorded a plus over the week. Meanwhile, the French Cac 40 managed to end the day minimally in the green, while the British FTSE 100 had to accept slight losses. In the telecommunications sector, an acquisition sparked lively trading activity and led to significant gains in the industry. Swisscom deserves attention as it acquired Vodafone's Italy business – a strategic move that will lead to the second-largest provider position in Italy. The announcement that dividends will be increased from 2026 to honor investments was rewarded at the stock exchange with a strong price increase. Meanwhile, consumer goods manufacturers faced less favorable circumstances, led by Reckitt, which suffered a dramatic decline after a legal defeat. Investors' concerns are rooted not only in the imminent payment of damages but also in the prospect of further potential proceedings. For the European technology sector, a grim picture emerged, fueled by negative impulses from the US tech exchange Nasdaq and an expectation adjustment by Adobe. Additionally, the announcement that Chinese regulatory authorities urged domestic electric vehicle manufacturers to rely more on local chipmakers created additional selling pressure on European semiconductor producers. The real estate sector was not spared and saw one of its protagonists, Vonovia, fall into a steep decline. Both the loss numbers and the adjustment of the dividend policy were negatively received by the market.