Central banks in the eurozone, UK and Switzerland lifted rates by 50 basis points, revised higher inflation outlook for the next three years and lowered economic growth expectations.
European markets struggled ahead of rate decisions from central bankers. Inflation in the UK and Spain edged lower and industrial output declined for the first time in three months.
European markets advanced on the hopes of rate moderation this week in the U.S. and Europe. Energy prices rose on the worries that supply may lag the demand of natural gas in 2023.
Benchmark indexes in Europe fell 0.4% ahead of rate decisions later in the week. The German residential sector struggled with rising cancellations and higher construction costs.
Carl Zeiss reported strong annual sales increase and guided slightly weaker outlook. Credit Suisse gets one step closer in completing its capital raising plan. Anglo American said production volumes are likely to fall.
The global gloom gripped European stocks and crude oil prices dropped to this year's low. UK home prices eased for the third month in a row, but still above pre-pandemic levels.
European markets traded lower after German retail sales fell unexpectedly in October and business activities shrank for the fifth month in a row in November.
Wholesale inflation in the eurozone eased in October but remained elevated fueled by elevated energy prices. The euro and the British pound closed higher for the second week in a row.
Tech stocks led the rebound in Europe, bond yields eased and the euro and the pound edged higher for the third day in a row after the U.S. inflation moderated.
Euro zone inflation in November eased for the first time since June 2021 but held steady in France. German unemployment rate rose and Spain's retail sales improved in October.
European markets trended lower and investors reacted to corporate and economic news. Inflation in Spain and Germany inched lower after energy price inflation eased.
European markets reacted negatively to the rising unrest in China as many European companies rely on Chinese demand for luxury products and supply of intermediate goods based in the second largest economy.
European markets closed higher for the week and investors looked ahead to the rate decision next week. The euro gained for the fourth day in a row and investors anticipate at least 50 basis points rate increase.
