(Bloomberg) — European stocks edged lower, heading for their biggest weekly loss in two months, as a jump in oil prices dragged airline shares lower.
The Stoxx Europe 600 Index fell 0.08% as of 12:41 p.m. in Paris. Travel stocks dropped the most, along with economically sensitive sectors such as consumer products, condstruction and building materials and autos. Oil stocks rose the most.
The benchmark is down 1% over the past five days, its first weekly decline in six, after President Donald Trump’s threat to impose new Greenland-linked tariffs. Stocks clawed back some losses Thursday afer Trump backed down, and on Friday almost erased a drop of 0.4%. Given the outlook for growth in earnings and the economy, investors are willing to look past some political turbulence.
“The very limited pullback this week shows that investors are getting used to the noise, with the Trump administration seemingly pedaling back whenever markets react too strongly,” said Philipp Lisibach, head of strategy and research at LGT Private Banking.
Deutsche Lufthansa AG dropped 2.4%, while Air France-KLM sank 4.9% and International Consolidated Airlines Group SA declined 3.5%. WTI crude futures climbed 1.8%.
Ericsson AB rose 9.4% after the telecom-equipment maker’s efforts to cut costs and boost margins paid off.
The latest reading of the euro area’s Composite Purchasing Managers’ Index showed private-sector activity maintained moderate growth in January as Germany’s fledgling economic recovery helped offset weakness in France.
In other individual stocks, Wacker Neuson SE fell 22%, the most on record, after the firm announced that discussions regarding a potential majority stake acquisition and takeover by Doosan Bobcat have been terminated. Adidas AG dropped 5.5% after RBC downgraded the German sportswear maker, forecasting decelerating revenue growth.
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