European Stock Markets Overview

European stock markets edged mostly lower on Friday, focusing on third-quarter corporate earnings amidst weak economic growth, which weighs on sentiment.

At 03:05 ET (07:05 GMT), the DAX index in Germany traded 0.1% lower, 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, as released data indicated, putting the focus on Germany's Ifo surveys later in the session. The eurozone economy is currently struggling, with PMI activity data still in contraction territory, heavily weighing on sentiment despite the European Central Bank (ECB) easing monetary policy by cutting interest rates three times this year, each by 25 basis points.

Speculation is growing that ECB policymakers may agree to a larger rate cut at the next meeting due to the weak economic outlook, though central bank hawks are trying to cool this talk. The annual IMF-World Bank meetings enter their penultimate day later Friday, and traders will look for any comments regarding future monetary policy.

Mercedes Hit by Chinese Woe

The quarterly corporate earnings season is in focus as the week draws to a close. Mercedes-Benz (OTC:MBGAF) stock fell over 2% after the German auto giant reported a plunge in earnings in its core car division as Chinese consumers 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 following disappointing third-quarter core earnings. Remy Cointreau (EPA:RCOP) stock fell 1% after it reported a worse-than-expected fall in quarterly sales amid worsening market conditions in China. Conversely, Sanofi (NASDAQ:SNY) stock rose 2% after the French drugmaker posted stronger-than-expected earnings growth for the third quarter, aided 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 better than expected third-quarter results. Attention is also turning to next week’s earnings from major tech firms like Alphabet (NASDAQ:GOOGL), Amazon (NASDAQ:AMZN), Apple (NASDAQ:AAPL), Meta (NASDAQ:META), and Microsoft (NASDAQ:MSFT) over a three-day period beginning Tuesday.

Crude Set for Weekly Gains

Oil prices edged higher on Friday, on track for a weekly gain as tensions in the crude-rich Middle East maintained a risk premium in 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 set to register gains of around 2% this week as traders await Israel's response to a missile attack by Iran on October 1, which could disrupt the world’s top oil-producing region. U.S. and Israeli officials are expected to restart talks for a ceasefire and the release of hostages in Gaza in the coming days, but hopes remain low as prior attempts to reach a deal have failed.