European Equities Slide Amid Mixed Earnings and Inflation Anticipation

European equities retreated on Friday as investors navigated mixed quarterly earnings and anticipated crucial euro zone inflation data, closing an eventful month.

The pan-European STOXX 600 index declined by 0.1% at 0800 GMT, marking a fourth consecutive session of losses and positioning approximately 0.5% below its record high from Wednesday. The benchmark is projected to finish the week marginally down, influenced by speculation around fewer interest rate cuts in the U.S. and Europe, earnings reports from U.S. tech giants, and an unstable Sino-U.S. trade agreement.

Despite these setbacks, the STOXX 600 is poised for a fourth uninterrupted monthly gain. Attention shifts to euro zone inflation data post European Central Bank’s decision to maintain interest rates at 2% for the third consecutive meeting, indicating a sturdier economy. Meanwhile, Apple's robust holiday-quarter iPhone sales projection and Amazon's cloud revenue growth acceleration underscored Big Tech's market dominance, positively affecting Wall Street futures.