FX.co ★ European Stocks Ease from Records

European stock markets ended the week with slight losses on Friday, retreating from record highs achieved in the prior session. Investors were weighing corporate earnings and keeping a watchful eye on geopolitical tensions. The Eurozone's STOXX 50 index fell by 0.3% to 6,021, while the broader pan-European STOXX 600 saw a modest decline to 614. The luxury sector bore the brunt of the downturn as warnings emerged of potential earnings downturns in the fourth quarter. Shares in LVMH, Hermes, and Ferrari each dropped by over 2%, with EssilorLuxottica experiencing a 4% decrease. Concurrently, BASF fell by 3.7%, impacted by a forecasted cold front that led to a surge of over 10% in European natural gas prices, consequently increasing the company's operational expenses. In contrast, ASML saw an uptick of nearly 2%, buoyed by continued optimism in the tech and AI sectors, following robust performance results from TSMC. Siemens Energy also experienced a significant rise, climbing over 6% after confirming its dividend. Over the course of the week, the STOXX 50 recorded a gain of 0.5%, while the STOXX 600 rose by 0.7%.