European Shares Subdued On Weak German, UK Data

European stocks fell in cautious trade on Friday amid concerns that higher interest rates may weigh on global economic growth.

Disappointing economic data from Germany and U.K. also added to the gloomy mood.

Data showed earlier in the day that German industrial production declined more than expected in May.

Industrial production posted a monthly fall of 0.2 percent in May in contrast to the 0.3 percent increase in April, according to figures from Destatis. Output was forecast to drop 0.1 percent.

On a yearly basis, industrial production grew 0.7 percent, following a 1.7 percent rise in April.

Elsewhere, U.K. house prices declined at the fastest pace in twelve years in June as rising interest rates dampened demand, results of a survey by Lloyds Bank subsidiary Halifax showed.

House prices fell 2.6 percent on a yearly basis in June, which was the biggest fall since June 2011. This followed a 1.1 percent decrease in May.

House prices edged down 0.1 percent on month in June, following a 0.2 percent decrease in May. This was the third consecutive fall.

The pan European STOXX 600 was down 0.3 percent at 446.11 after losing 2.3 percent on Thursday.

The German DAX was marginally lower, France’s CAC 40 traded flat and the U.K.’s FTSE 100 was down 0.3 percent.

The euro was on defensive mode ahead of the all-important U.S. jobs report due later in the day.

Clariant AG shares soared 4.4 percent despite the Swiss specialty chemicals firm reporting weak preliminary sales in its second quarter and lowering its 2023 guidance.

Housebuilders Barratt Developments, Taylor Wimpey and Persimmon were down between half a percent and 1.4 percent in London on concerns how deep or persistent the downturn in house prices will be.

Bottler Coca-Cola HBC jumped 3.7 percent after upgrading its 2023 earnings guidance.

Oil & gas major Shell edged down slightly after it projected post tax impairments of up to $3 billion for the second quarter, primarily driven by a 1 percent increase in the discount rate used for impairment testing.

Airbus shares rose about 1 percent in Paris. The aircraft manufacturer reported significantly higher orders in June, helped by record demand from India.

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