European stocks close lower as Trump rally fades; oil slides on OPEC report
European markets closed lower on Friday as investors paused for breath following the victory for Donald Trump which has spurred on risk assets across the globe, and a sharp slide in oil prices weighed on sentiment.
The pan-European Stoxx 600 closed down 0.53 percent.
Cautious sentiment in Europe also filtered through to the U.S. with the Dow Jones Industrial Average and the S&P 500 mildly lower.
Stocks in European health care fell more than 1 percent on speculation that the U.S. president-elect would repeal “Obamacare”, leaving investors wondering what will happen in this policy area.
On Thursday, President-elect Donald Trump and President Barack Obama discussed the upcoming transition. After a 90-minute meeting they seemed to have put the rancor that dominated the campaign aside. Trump has announced that immigration and health care will be his key areas when at the White House. Nationwide protests in the U.S. continued overnight for a second day running.
The European oil and gas sector fell sharply after OPEC reported an increase in oil production in October which sent Brent and WTI crude lower.
Meanwhile, several British lawmakers have reportedly said they are prepared to vote against Brexit negotiations after U.K. judges ruled that the government needed parliamentary approval to begin its departure process from the EU. The opposition for Brexit could derail the process and increase the period of uncertainty for investors.
On the earnings front, Allianz reported Friday a net profit of 1.56 billion euros ($1.7 billion), beating forecasts. Its shares closed 1.28 percent higher.
Altice posted third-quarter profit ahead of expectations boosted by a solid performance in its U.S. businesses. Its shares finished the day in the red.
Volkswagen shares closed in the green after the German carmaker reported Tuesday an increase in sales between January and October by 2.6 percent.
Elsewhere, German inflation data showed Friday that while leisure inflation fell, overall core inflation remained unchanged in the month of October.
Source: CNBC
