Investing.com — European stock markets fell Friday, as investors fretted about the potential of a trade war with the US, while digesting more important economic data.
At 03:10 ET (08:10 GMT), Germany’s fell 1.1%, France’s dropped 1%, and the UK’s slipped 0.4%.
Trump issues tariff threat against EU
US President-elect Donald Trump reignited tensions with the European Union on Friday by threatening to impose tariffs if the EU didn’t make sme atempts to address its substantial trade deficit with the US by buying American oil and gas.
The statement was made on his Truth Social platform, adding to concerns about US-EU trade relations.
The eurozone economy is currently struggling for growth, with the German economy, the region’s largest, particularly hard hit. A trade war at this point would be economically taxing.
Data released earlier Friday showed that rose unexpectedly in November, increasing by 0.1% on the year, after having been expected to fall by 0.3%.
British rose by a weaker-than-expected 0.2% in November, instead of the 0.5% growth expected, adding to signs of slow momentum in the economy.
US faces imminent government shutdown
Political uncertainty on the US also weighed on sentiment, with the country braced for a partial government shutdown set to begin Friday night after a Trump-endorsed spending bill failed to gain sufficient support.
A group of Republican lawmakers opposed the proposal, which sought to extend government funding for three months and suspend the debt ceiling for two years. The legislative impasse has injected fresh uncertainty into the political landscape.
ITM Power secures green hydrogen project; Synairgen targets £19 million for phase 2 trials
ITM Power (LON:) stock rose over 3% after the hydrogen economy company secured a contract for a green hydrogen project in the EU.
Meanwhile, Synairgen (LON:) stock slumped 36% after it launched a fundraising campaign to secure up to £19 million for phase 2 trials of its antiviral treatment.
Oil prices down amid Fed signals and demand concerns
prices fell on Friday, as the Federal Reserve hinted at a slower pace of rate cuts next year, boosting the dollar to a two-year high.
At 03:10 ET, futures for February delivery fell 0.6% to $72.48 per barrel, while futures also dropped 2.2% to $69 per barrel.
Persistent worries over weakening demand, limited details on Chinese stimulus measures, and signs of reduced U.S. fuel consumption further pressured prices.
Additionally, concerns over the impending U.S. government shutdown added to market anxiety, with expectations of disrupted travel and economic activity.
