BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - The European markets ended Friday's session firmly in the red. Bank stocks, especially Italian bank stocks, were hard hit by the concerns raised by Italy's budget proposal.
Italy's new government offered a budget with a deficit target three times as big as the previous administration's goal, putting the country at odds with the European Union.
The pan-European Stoxx Europe 600 index weakened by 0.83 percent. The Euro Stoxx 50 index of eurozone bluechip stocks decreased 1.47 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.88 percent.
The DAX of Germany dropped 1.52 percent and the CAC of France fell 0.85 percent. The FTSE 100 of the U.K. declined 0.47 percent and the SMI of Switzerland finished lower by 0.27 percent.
In Frankfurt, chemical producer BASF tumbled 2.30 percent after it signed an agreement with LetterOne to merge their respective oil and gas businesses in a joint venture.
Automaker Volkswagen fell 1.05 percent after reports that it is about to expel Rupert Stadler, Audi CEO.
In London, RSA Insurance plunged 9.31 percent. The general insurance company warned of lower profit this year after its U.K. underwriting business suffered a loss of £70m in the third quarter.
Royal Bank of Scotland dropped 2.19 percent on news that it plans to launch a new standalone consumer bank.
Low-cost airline easyJet fell 0.87 percent despite the airline sounding upbeat about fourth quarter and fiscal 2018 performance.
Saab soared 8.15 percent in Stockholm. Boeing and the Swedish aerospace company have won a $9.2 billion contract from the U.S. Air Force.
UniCredit sank 6.73 percent, Banco BPM tumbled 9.43 percent and UBI Banca plummeted 7.84 percent in Milan as yields on Italian government bonds hit three-week highs on worries about the country's ability to pay its debts.
Eurozone inflation accelerated in September on food and energy prices, flash data from Eurostat showed Friday. Inflation rose marginally to 2.1 percent, in line with expectations, from 2 percent a month ago.
German unemployment decreased notably in September, figures from the Federal Labor Agency revealed Friday. The number of unemployed declined 23,000 from the previous month to 2.3 million in September. Economists had forecast a moderate fall of 9,000. Unemployment had declined by 10,000 in August.
Germany's jobless rate remained unchanged in August, figures from Destatis revealed Friday. The unemployment rate came in at adjusted 3.4 percent, the same rate as seen in July.
France consumer price inflation slowed marginally in September, the provisional estimate from the statistical office Insee showed Friday. Inflation eased to 2.2 percent in September from 2.3 percent in August. The rate was expected to remain at 2.3 percent. Final data is due on October 11.
The UK economy expanded as initially estimated in the second quarter and the current account gap widened on visible trade deficit and primary income shortfall, data from the Office for National Statistics revealed Friday.
Gross domestic product grew 0.4 percent in the second quarter, unrevised from the previous estimate. The growth rate for the first quarter was revised down to 0.1 percent from 0.2 percent.
Due to higher visible trade deficit and primary income shortfall, the current account deficit widened by GBP 4.6 billion to GBP 20.3 billion in the second quarter. This was equivalent to 3.9 percent of GDP.
UK consumer confidence weakened in September amid heightened uncertainty surrounding Brexit, survey data from GfK showed Friday. The consumer sentiment index dropped to -9 in September from -7 in August. The expected score was -8.
Personal income in the U.S. rose by slightly less than expected in the month of August, according to a report released by the Commerce Department on Friday, while personal spending increased in line with economist estimates.
The report said personal income climbed by 0.3 percent in August, matching the increase seen in July. Economists had expected income to rise by 0.4 percent.
Meanwhile, the Commerce Department said personal spending rose by 0.3 percent in August after climbing by 0.4 percent in the previous month. Spending had been expected to increase by 0.3 percent.
Reflecting moderations in both output and new orders growth as well as weaker hiring sentiment, MNI Indicators released a report on Friday showing a bigger than expected slowdown in the pace of growth in Chicago-area business activity in the month of September.
MNI Indicators said its Chicago business barometer fell to 60.4 in September from 63.6 in August, although a reading above 50 still indicates growth. Economists had expected the barometer to edge down to 62.5.
Copyright RTT News/dpa-AFX
© 2018 AFX News
