VIENNA (dpa-AFX) - The majority of the European markets ended Friday's session in negative territory. Weak economic data from Europe and from the U.S. had a negative impact on investor sentiment at the end of the trading week. Consumer prices in the Eurozone fell more than expected in January and U.S. fourth quarter GDP data was weaker than expected. Mining stocks were a bright spot Friday, as commodity prices increased and the price of gold rebounded.
Investors continue to watch the developments in Greece. The country's finance minister stated today that Greece will not seek a bailout extension. Jeroen Dijsselbloem cautioned against taking unilateral steps and ignoring previous arrangements after holding his first meeting with the new Greek government Friday.
Eurozone consumer prices declined for the second straight month in January largely due to lower energy prices, posting the biggest annual fall since 2009. The harmonized index of consumer prices in the 19-nation currency bloc fell 0.6 percent year-on-year in January, with a similar rate of decline last seen only in July 2009. Final data is due on February 24.
This was the second consecutive fall in prices and exceeded the 0.5 percent drop forecast by economists. Prices were down 0.2 percent in December, which was the first decline since October 2009.
Germany's retail sales rose at a slower than expected rate in December, preliminary data from Destatis showed Friday. Sales grew a calendar and seasonally-adjusted 0.1 percent month-on-month in December following the 0.5 percent gain in November. Economists had expected sales to increase 0.3 percent.
Economic activity in the U.S. continued to increase in the final three months of 2014, according to a report released by the Commerce Department on Friday, although the pace of growth slowed by more than economists had expected.
The report said U.S. gross domestic product climbed by 2.6 percent in the fourth quarter following the 5.0 percent jump seen in the third quarter. Economists had called for GDP to increase by a somewhat more substantial 3.2 percent during the quarter.
The Euro Stoxx 50 index of eurozone bluechip stocks decreased 0.78 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.58 percent.
The DAX of Germany dropped by 0.41 percent and the CAC 40 of France fell by 0.59 percent. The FTSE 100 of the U.K. declined by 0.90 percent and the SMI of Switzerland dipped by 0.60 percent.
In Frankfurt, Volkswagen dropped by 2.87 percent.
ThyssenKrupp climbed by 2.06 percent and Lanxess gained 2.14 percent.
In Paris, Credit Agricole decreased by 1.81 percent. BNP Paribas fell by 1.84 percent and Societe Generale lost 1.17 percent.
Renault declined by 2.25 percent and Peugeot finished lower by 0.46 percent.
In London, mining stocks turned in a strong performance as commodity prices climbed. Anglo American increased by 1.41 percent and BHP Billiton gained 2.09 percent. Fresnillo advanced by 4.23 percent and Randgold Resources added 4.89 percent.
Vedanta Resources rose by 0.65 percent. The company issued its production report for the third quarter today.
BT Group, which reported third-quarter results, finished lower by 2.61 percent.
The euro area jobless rate fell unexpectedly to the lowest level since August 2012, yet remains elevated. The unemployment rate came in at a double-digit 11.4 percent in December, slightly down from 11.5 percent in November. It was expected to remain unchanged at 11.5 percent in December.
The leading index for Eurozone, which measures future economic activity, increased for the second straight month in December at a stable rate, a report from the Conference Board showed Friday. The Conference Board leading economic index rose 0.2 percent in December, same increase as in the previous month. In October, the index dropped 0.1 percent.
French consumer spending grew at a fastest pace in nearly three years during December, led by a marked rebound in energy consumption, figures from the statistical office INSEE revealed Friday.
Household consumption rose 1.5 percent from November, when it grew 0.2 percent, revised down from 0.4 percent. Economists had forecast only 0.5 percent growth for the month. The latest consumption growth was the biggest since February 2012, when it was 2.4 percent.
Spain's economy grew at the fastest pace in seven years during the final three months of 2014 even as the worsening deflation picture cast a cloud on the recovery.
Gross domestic product advanced 0.7 percent sequentially, preliminary figures from the statistical office INE showed Friday. The growth was expected to stabilize at 0.5 percent. It also exceeded Bank of Spain's 0.6 percent estimate.
U.K. mortgage approvals increased in December from a 17-month low in the prior month, the Bank of England reported Friday. The number of mortgages approved for house purchases rose to a 3-month high of 60,275 from 58,956 in November. It was forecast to rise slightly to 59,000 in December.
An index measuring consumer confidence in the United Kingdom increased more than expected, turning positive in January, the latest survey from polling company GfK revealed on Friday. The consumer confidence index came in at 1 in January, turning positive unexpectedly as economists forecast the index to come in at -2. This follows the nine-month low score of -4 in December.
Chicago-area business activity unexpectedly grew at a faster pace in the month of January, according to a report released by MNI Indicators on Friday, with the Chicago business barometer rebounding following two consecutive monthly declines.
The report said the Chicago business barometer climbed to 59.4 in January from a revised 58.8 in December, with a reading above 50 indicating growth in regional business activity. The increase by the business barometer came as a surprise to economists, who had expected the index to drop to a reading of 57.7.
While the University of Michigan released a report on Friday showing a modest downward revision to its reading on U.S. consumer sentiment in the month of January, the index remained at an eleven-year high. The report said the consumer sentiment index for January was downwardly revised to 98.1 from the mid-month reading of 98.2.
The consumer sentiment index still remains well above the final December of 93.6 and is at its best level since reaching 103.8 in January of 2004.
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