European stocks decline at end of busy week; eurozone CPI due

Investing.com - European stocks slipped lower on Friday, ending a busy week on a negative note as investors digested corporate earnings and major interest rate decisions ahead of a key inflation release.

The DAX index in Germany declined 0.7% the FTSE 100 in the U.K. dropped and the CAC 40 in France closed 0.4% lower.  

ECB on hold for some time?  

The European Central Bank decided to keep its key interest rate, the deposit facility rate, steady at 2% on Thursday, for the third consecutive meeting, indicating that policy was in a "good place" as economic risks receded and as the eurozone showed continued resilience in the face of uncertainty.

Barclays has now revised its forecast for the ECB’s rate trajectory, expecting it to keep interest rates steady in its December meeting from its earlier view of a quarter point cut, and expects the central bank to hold the interest rates steady 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.

The Eurozone consumer price index is expected to come in at 2.1% on the year in October, a small reduction from 2.2% the prior month, indicating that inflation remains under control in the region.

Earlier in the session, data showed that French consumer prices rose slightly less than expected in October, with the country’s harmonized inflation rate, adjusted for comparison with other euro zone countries, just 0.9% year-on-year in October.

The Federal Reserve, by contrast, lowered its benchmark rate by 25 basis points to a range of 3.75%-4.00% earlier in the week, marking its third cut this year.

However, Chair Jerome Powell tempered market expectations for another move in December, saying a further reduction was “far from a foregone conclusion.”

Apple, Amazon earnings in spotlight 

It’s a quieter day for earnings Friday, with the spotlight on upbeat earnings from two of Wall Street’s biggest names.

Apple (NASDAQ:AAPL) reported stronger-than-expected iPhone and services revenue, with Chief Executive Tim Cook saying the company was poised for a record holiday quarter. 

Amazon (NASDAQ:AMZN) posted quarterly earnings that topped estimates, with the retail giant buoyed by a rebound in retail margins and solid growth at its cloud arm, Amazon Web Services.

In Europe, Danske Bank (CSE:DANSKE) said it expects its full-year 2025 net profit to be at the upper end of its target range, even after reporting a 5% fall in profit for the first nine months of the year, with the Danish lender citing higher loan impairment charges and lower income from its insurance business.

Caixabank (BME:CABK) announced a new €500 million share buyback program alongside third-quarter results that were broadly in line with forecasts, with the Spanish lender posting a slight earnings beat on stronger income and stable asset quality.

Aker Solutions (OL:AKSOA) reported higher earnings in the third quarter of 2025, with the Norwegian engineering company supported by stronger activity across its project portfolio. 

Fuchs (ETR:FPEn) reported stronger third-quarter results, with the German lubricant manufacturer beating earnings forecasts and confirming its full-year guidance. 

Crude set for third consecutive monthly loss 

Oil prices initially Friday, before grinding higher. However, they are on track for a third consecutive losing month as a stronger dollar and likely rising supply from major producers weighed. 

Brent futures are up 0.5% to $64.68 a barrel, and U.S. West Texas Intermediate crude futures has gained 0.5% to $60.90 a barrel.

Both Brent and WTI are set to fall in October as rising supply is expected to exceed demand growth this year, with the Organization of the Petroleum Exporting Countries and major non-OPEC producers ramping up output to gain market share.

More supply will also cushion the impact of Western sanctions disrupting Russian oil exports to its top buyers China and India.