Investing.com - European stock markets edged mostly lower Friday, with third-quarter corporate earnings in the spotlight as weak economic growth weighs on sentiment.
At 03:05 ET (07:05 GMT), the DAX index in Germany traded 0.1% lower and the CAC 40 in France fell 0.3%, while the FTSE 100 in the U.K. traded largely unchanged.
European sentiment weak
French consumer confidence slipped slightly in October, from the prior month, data released earlier Friday showed, putting the focus on Germany's Ifo surveys later in the session.
The eurozone economy is struggling at the moment, with PMI activity data still well in contraction territory, and this is weighing heavily on sentiment, even with the European Central Bank easing monetary policy, cutting interest rates three times already this year, all by 25 basis points.
Speculation is growing that ECB policymakers will agree to a larger rate cut at the next meeting, given the weak economic outlook, although central bank hawks have tried to cool this talk.
The annual IMF-World Bank meetings enter the penultimate day later Friday, and traders will be looking for any comments on future monetary policy.
Mercedes hit by Chinese woe
The quarterly corporate earnings season remains in focus in Europe as the week draws to a close.
Mercedes-Benz (OTC:MBGAF) stock fell over 2% after the German auto giant said earnings in its core car division plunged in the third quarter as Chinese consumers continued to cut back on luxury goods.
Norwegian Air (OL:NAS) stock fell 0.5% after the budget carrier lowered the upper end of its 2024 profit forecast range after reporting disappointing third-quarter core earnings.
Remy Cointreau (EPA:RCOP) stock fell 1% after the French spirits maker reported a worse-than-expected fall in quarterly sales amid worsening market conditions in China.
Sanofi (NASDAQ:SNY) stock rose 2% after the French drugmaker posted stronger earnings growth than expected in the third quarter, helped by earlier-than-anticipated sales of seasonal vaccines.
Eni (BIT:ENI) stock rose 1% after the Italian energy group announced plans to increase its share buyback program after reporting better than expected third-quarter results.
Across the pond, attention is turning to next week’s earnings, with results due from the tech giants Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Meta (NASDAQ:META) and Microsoft (NASDAQ:MSFT) over a three-day period from Tuesday.
Crude set for weekly gains
Oil prices edged higher Friday, on track for a weekly gain as tensions in the crude-rich Middle East ensured a risk premium remained within the market.
By 03:05 ET, the Brent contract climbed 0.4% to $74.69 per barrel, while U.S. crude futures (WTI) traded 0.4% higher at $70.47 per barrel.
Both contracts are on course to register gains of around 2% this week as traders await Israel's response to a missile attack by Iran on Oct. 1 that could disrupt from the world’s top oil-producing region.
U.S. and Israeli officials are set to restart talks for a ceasefire and the release of hostages in Gaza in the coming days, but hopes are not high as a number of previous attempts to reach a deal have failed.