MW: European stocks decline, but weekly gain in sight
European stocks slipped Friday, as investors wrap up the last trading week before the Christmas holiday, while digesting monetary policy moves by the U.S. Federal Reserve and the Bank of Japan.
The Stoxx Europe 600 SXXP, -1.02% fell 0.4% to 363.50, with only the energy group posting advances. Stocks on Thursday surged 1.2% after the Federal Reserve’s decision to raise interest rates for the first time since 2006 was seen as an expression of confidence in the strengthening of the world’s largest economy.
“Currently markets feel like a newly married couple, trying to find their way in a newly anointed relationship. That new world is one of higher interest rates in the U.S., as much anticipated and expected the move was,” said Simon Smith, chief economist at FxPro, in a note.
“The situation is probably not helped by declining liquidity into the festive period, which is going to be a factor for markets from today but especially from Monday until the end of the month,” he said.
