29.08.202509:40:43UTC+00European Stocks Pull Back

European equities declined on Friday as investors continued to evaluate the global interest rate trajectory and the economic health of Europe. The STOXX 50 and STOXX 600 indices both experienced a decrease of 0.6%. Harmonized inflation figures for France and Italy came in slightly below expectations, whereas Spain's figures met the median forecasts, leaving the market uncertain about the European Central Bank's likelihood of implementing a final rate cut this year. Despite this, long-term bond yields in major Eurozone economies ticked higher, increasing the pressure on banking stocks amid ongoing political turmoil in France stemming from budget disagreements, which have expanded yield spreads and put bank equities under strain. Notably, Santander, ING, and Nordea each saw a 1.5% decline, and technology heavyweight SAP dropped by 1.8%. In contrast, Ferrari shares surged by over 2% following a recommendation from Morgan Stanley. For the month of August, both benchmark indices were on track to post gains just shy of 1%.