13.02.202617:10:26UTC+00European Stocks Close Lower

European equities ended modestly lower for a second consecutive session on Friday, pressured once again by major banking stocks and lagging behind North American markets. The underperformance came despite a subdued US inflation reading, which reinforced expectations for multiple Federal Reserve rate cuts this year.

The Eurozone’s STOXX 50 slipped 0.4% to 5,987, while the pan-European STOXX 600 edged down 0.1% to 617, marking a second straight day of slight declines after hitting a record high on Wednesday.

Banking heavyweights were among the main drags, with UniCredit, Deutsche Bank, and BBVA losing between 3.5% and 4%. In the consumer sector, L’Oréal dropped 5% after its earnings release pointed to some softness in year-end sales. Hermes, by contrast, posted results that beat expectations, but its shares still finished marginally lower.

On the upside, Safran jumped 8.3% after the company raised its full-year revenue and earnings guidance.

On the macroeconomic front, Eurozone employment rose 0.3%, extending the bloc’s gradual but steady job growth and supporting expectations that the European Central Bank will keep interest rates on hold in the near term.