European markets ended the week on a softer note Friday, with most regional indexes slipping as investors weighed a flurry of corporate earnings and major central bank decisions ahead of a key eurozone inflation report.
At 08:05 GMT, Germany’s DAX and the UK’s FTSE 100 each edged down 0.2%, while France’s CAC 40 traded flat.
ECB expected to stay patient
The European Central Bank left its deposit rate unchanged at 2% on Thursday for a third consecutive meeting, signaling that policy is in a “good place” as economic risks ease and the eurozone continues to demonstrate resilience amid uncertainty.
Barclays revised its outlook for the ECB’s policy path, now expecting the central bank to hold rates steady in December rather than cutting by 25 basis points as previously anticipated. The bank also expects rates to remain unchanged through the end of 2026.
“The ECB continues to convey very little, if any, conviction on whether and for how long the current stance will persist,” Barclays said in a note.
Economists expect the eurozone consumer price index for October to register at 2.1% year-on-year, a slight decline from 2.2% in September, indicating that inflation remains largely contained. Earlier data showed French consumer prices rose less than expected, with harmonized inflation—adjusted for eurozone comparison—coming in at just 0.9% on the year.
Meanwhile, the U.S. Federal Reserve cut its benchmark rate by 25 basis points earlier this week to a range of 3.75%-4.00%, marking its third reduction this year. However, Chair Jerome Powell cautioned that another cut in December was “far from a foregone conclusion.”
Apple and Amazon earnings highlight U.S. session
Friday was a quieter session for corporate earnings, though results from two of Wall Street’s biggest names drew attention.
Apple (NASDAQ:AAPL) posted stronger-than-expected iPhone and services revenue, with CEO Tim Cook saying the company was poised for a record-breaking holiday quarter.
Amazon (NASDAQ:AMZN) also beat expectations, reporting robust quarterly results driven by improved retail margins and continued strength in its cloud division, Amazon Web Services.
In Europe, Danske Bank (TG:DSN) forecast full-year 2025 profit at the upper end of its target range despite a 5% decline in profit for the first nine months, citing higher loan loss provisions and weaker income from insurance operations.
Caixabank (USOTC:CIXPF) launched a new €500 million share buyback alongside third-quarter results that slightly exceeded expectations, supported by stronger income and steady asset quality.
Aker Solutions (BIT:1AKRO) reported higher Q3 earnings, benefiting from robust project activity, while Fuchs (TG:FPE3) delivered stronger results than expected and reaffirmed its full-year guidance.
Oil on track for third straight monthly decline
Crude prices slipped again Friday, heading for a third consecutive monthly loss as a stronger U.S. dollar and rising output from major producers weighed on sentiment.
Brent crude futures were down 0.3% at $64.21 a barrel, while U.S. West Texas Intermediate (WTI) crude also fell 0.3% to $60.42. Both benchmarks are set to drop roughly 3% in October, with increasing supply expected to outpace demand growth as OPEC and non-OPEC producers boost output to capture market share.
Additional production is also expected to offset disruptions caused by Western sanctions on Russian oil exports to key buyers, including China and India.
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