Investing.com -- European markets slightly down on Friday as investors digested regional economic weakness in the wake of the European Central Bank’s latest interest rate cut.
At 11:40 ET (16:40 GMT), Germany’s DAX gained 0.01%, the UK’s FTSE 100 fell 0.15%, and France’s CAC gained 0.15%.
UK economy contracts again
The UK economy shrank by 0.1% in October, according to data released earlier Friday, marking its second consecutive monthly contraction, and cane as a surprise as a minor rebound from September's weakness had been expected.
The contraction adds to concerns about the region’s economic outlook as businesses and households navigate persistent inflationary pressures and elevated borrowing costs.
At the same time, German exports fell by 2.8% in October, more than expected and an indication that the long-awaited recovery in external demand has been delayed.
Consumer prices in France were up 1.7% year-on-year in November, in line with its preliminary reading published late last month.
ECB and other central banks slash interest rates
Still, the European Central Bank has responded to this weakness, cutting interest rates on Thursday by 25 basis points, its fourth this year, and signaled the potential for more reductions in 2025.
Elsewhere, the Swiss National Bank surprised markets with a larger-than-expected 50-basis-point cut, while Denmark’s central bank trimmed its rates by 25 basis points.
Munich Re gains on strong guidance
In corporate news, Munich Re (ETR:MUVGn) stock rose over 5% after the reinsurer said it aims to achieve a net profit of €6 billion in 2025, citing strong operational performance across its business segments.
Novo Nordisk (NYSE:NVO) stock fell about 3.9%, after Reuters reported that Britons paying privately for obesity drugs are increasingly choosing Eli Lilly's (NYSE:LLY) Mounjaro over Novo Nordisk's Wegovy,
Oil prices higher amid supply concerns
Oil prices gained Friday as markets noted the potential of supply disruptions from tighter sanctions on Iran and Russia.
At 11:40 ET Brent crude futures edged up 1.06% to $74.19 per barrel, while U.S. West Texas Intermediate crude rose 1.4% to $71 per barrel.
Sanctions targeting two of the world’s largest oil producers have raised concerns about potential supply constraints.
However, the International Energy Agency (IEA) stated on Thursday that it expects the oil market to remain well-supplied through 2025, despite anticipating increased demand.
(Navamya Acharya contributed to this article.)