European markets dip on political concerns and sector volatility

European markets edged lower on Friday after a volatile start to 2025. The Stoxx 50 declined 0.4%, and the Stoxx 600 fell 0.1%, with most sectors in the red.

European markets dip on political concerns and sector volatility

Mining stocks led the losses, while financials posted modest gains. Investors focused on political uncertainties, including instability in France, German elections, and potential tariffs under US President-elect Donald Trump. On the data front, Turkey’s inflation eased to 44.38% year-on-year in December, slightly below expectations, while key economic data from Poland, Germany, Spain, and the UK remained in focus. Despite the dip, the Stoxx 600 gained 0.6% for the week, marking its second consecutive weekly increase.

Automakers struggle, while financials, energy, and GSK outperform

Automakers struggled as some EV models lost US tax credit eligibility due to stricter rules, while the financials and energy sectors outperformed. Airbus shares dropped after it missed its 2024 delivery target, while GSK rose on the news that China approved its drug Nucala for treating chronic rhinosinusitis.