The broad-based major European indices closed lower in Friday’s trading session, as banks and automotive stocks weighed down the markets.
In economic news, Eurostat, the statistical office of the European Union, reported that industrial producer prices rose 0.8% in the euro area (EA19), 1% in the EU28 in October, compared with September. Compared with October of 2015, industrial producer prices fell 0.4% in the euro area, and grew 0.2% in the EU28. The largest increases in industrial producer prices were recorded in Estonia, the Netherlands, and Belgium, while the largest decreases were reported in Latvia, Italy, Luxembourg and Slovenia.
And in the U.K., the Bank of England’s chief economist Andrew Haldane, warned about regional economic inequality within Great Britain. In a speech at the Materials Processing Institute in Middlesbrough, he cited that unemployment in northeast England is higher than for any other region in the U.K.
“The UK, perhaps more than any other country in the European Union, is an agglomeration of quite different micro-economies,” said Haldane. “Closing these gaps would not only boost the size of the aggregate economic pie, but would lead to a more equitable distribution of its slices.”
In equities, falling bank stocks and mining companies weighed down the FTSE in London, led by Royal Bank of Scotland, and Barclays, which lost 3.2% and 3.1% each. Mining firms BHP Billiton, Glencore, and Antofagasta dropped 2.6%, 2%, and 1.7% respectively.
In Frankfurt, banks also were a burden on the DAX, as Deutsche Bank and Commerzbank lost 1.9% and 1.7% each. Automotive stocks also pushed the index lower as automobile manufacturer Volkswagen and tire maker Continental dropped 0.5% and 0.4%.
And in Paris, the scenario was similar as banks and automotive stocks led the CAC into negative territory. Banks BNP Paribas, Societe Generale, and Credit Agricole fell 2.3%, 1.9%, and 1.4% respectively. Meanwhile automakers Renault and Peugeot closed 1.8% and 0.9% lower respectively.