FX.co ★ European Stocks Down 1%

European equities declined on Friday, with both the STOXX 50 and STOXX 600 losing around 1%, leaving the benchmarks on course to finish the week largely flat. The pullback came as oil prices continued to rise and the conflict in the Middle East showed no signs of easing. Consumer cyclicals, consumer staples, and financials were among the weakest sectors. Notable losers included HSBC (-2%), LVMH (-1.9%), Hermès (-1.1%), L’Oréal (-2.4%), Siemens (-2.9%), and Banco Santander (-2.3%). In contrast, defense and energy names posted gains, with Rheinmetall (+1.2%), Repsol (+1.8%), and BP (+1.7%) advancing. Zalando climbed 3.6% to top the STOXX 600, extending the previous session’s rally following better-than-expected results.