Europe stocks close lower, snap three-week winning streak; UK and German data disappoints

European markets closed lower Friday as investors reacted to disappointing data prints from two of the region’s largest economies.

The pan-European Stoxx 600 provisionally closed 0.62% lower, also recording a weekly loss after three weeks in the green.

Friday’s downbeat mood followed unexpected declines in both U.K. GDP and key export data from Germany.

The U.K. economy contracted by an estimated 0.1% on a monthly basis, the ONS said Friday, with officials attributing the downturn to a decline in production output. Economists polled by news agency Reuters had projected a 0.1% rise in GDP in October.

In France, President Emmanuel Macron named Francois Bayrou his new prime minister on Friday. The announcement comes after weeks of political turmoil in the country, during which lawmakers ousted former prime minister Michel Barnier.

The French CAC 40 index had traded slightly higher following the news, but slipped in late deals and closed 0.23% lower.

On Thursday, the European Central Bank lowered its key interest rate by 25 basis points, marking its fourth and final rate cut of the year. Policymakers also signaled the possibility of more reductions in 2025.

The Swiss National Bank also cut rates on Thursday by a larger-than-anticipated 50 basis points, while Denmark’s central bank announced a 25 basis point reduction.

Central bank watchers are now turning their attention to next week and rate decisions from the U.S. Federal Reserve and the Bank of England.

Asia-Pacific markets mostly fell overnight, led by losses in China after Beijing affirmed its recent policy shifts and stressed plans to boost growth after a high-profile meeting Thursday.

U.S. stocks opened higher, though the S&P 500 remained on course for its first weekly decline in four weeks.