European markets tumble as French unrest and oil prices curb earnings optimism

The pan-European Stoxx 600 index closed at 635.77 points on Friday, down 0.31% and marking a weekly decline of roughly 1.4%, the worst since early September. While strong quarterly results from companies such as SAP, Barclays and Kering initially lifted sentiment, the market was pressured by surging oil prices and escalating protests in France, which are expected to influence the country’s election cycle. Kering’s shares plunged 16.6% after Gucci sales missed expectations, dragging the luxury sector, which has already fallen 3.6% this year, lower.

Conversely, L’Oreal rose 5.6% on a sales beat, and Holcim and Sodexo posted gains after raising forecasts. Defence stocks fell after Safran’s 10% slide, and Volvo Cars tumbled over 24% following a larger-than-expected loss and a plan to cut 2,500 jobs. The European Central Bank is set to meet next week, with markets pricing in a high likelihood of unchanged rates, while Moody’s rating decision on France looms.