FRANKFURT: Europe’s STOXX 600 tumbled on Friday in broad-based losses led by automobile and telecom shares, while also logging a weekly decline in a week marked by retreating oil prices and interest-rate decisions by major central banks.
The pan-European index fell 1.1 percent to 635.45 points, giving up almost all the gains made in the last two sessions. It was down 0.6 percent for the week.
Regional bourses also ended the session in the red, with London’s FTSE 100 and Germany’s DAX down 1.5 percent and 1.6 percent, respectively.
The automobile and parts sector fell 3.4 percent, with Volkswagen leading the losses in its biggest one-day drop since September 2025, down 5.6 percent.
The company slashed its outlook, flagging €10 billion (USD11.5 billion) in one-off items related to its stake in luxury sports car maker Porsche, provisions for job cuts and a weak Chinese market.
Porsche shares fell 4.9 percent.
Telecommunication stocks were down 3.3 percent, posting their biggest single-day fall since April 2025, with Airtel Africa dropping 11.3 percent to become the STOXX’s top decliner after Bloomberg News reported that its unit Airtel Money is considering downsizing its London IPO.
Food and beverages lost 1.9 percent, with Nestle down 2.6 percent after Russia seized control of the Swiss food giant’s local assets.
Oil prices pared earlier losses on Friday as markets assessed Saudi supply alongside concerns about a widening Middle East conflict. Still, energy shares shed 0.7 percent and fell 0.5 percent for the week.
A respite in the selloff in the bond market, along with receding crude prices, helped risk sentiment this week.
The moves came even as the US Federal Reserve increased rates, while the Bank of England left rates unchanged but warned that further tightening may be needed if the war in Iran drags on.