European markets experienced a downturn midday Friday, aligning with a global trend as investors prepare for the Federal Reserve's favored inflation measure. The latest statistics on Personal Income and Outlays in the United States are set to be released at 8:30 am ET. Meanwhile, in regional developments, Britain's retail sales saw a modest increase of 0.2% month over month in November, counteracting the 0.7% drop recorded in October.
Further disclosures from the Office for National Statistics highlighted a decrease in public sector net borrowing in the UK, which totaled 11.25 billion pounds sterling in November, down from a revised 18.22 billion pounds the previous month. Italy's business confidence index demonstrated growth, rising to 95.3 points in December from November's 93.2, according to the statistics office Istat.
In Switzerland, the Swiss National Bank reported a significant decline in the current account surplus, which fell to 6.28 billion francs in the third quarter, down from a revised 18.33 billion francs in the second quarter. The pan-continental Stoxx Europe 600 Index showed a decline of nearly 2%. Sector-specific indices were similarly affected, with the Stoxx Europe 600 Oil and Gas Index dropping by 1.4% and the Stoxx 600 Europe Food and Beverage Index falling by 0.9%.
The REITE, a European REIT index, managed a modest increase of 0.2%, while the Stoxx Europe 600 Retail Index saw a decrease of 1.5%. On a national level, Germany's DAX index decreased by 1.2%, and the FTSE 100 in London was down by almost 1%. In Paris, the CAC 40 declined by 1%, while Spain's IBEX 35 lost 0.6%.
Yields on benchmark 10-year German bonds experienced a slight decrease, standing at 2.3%. Prices for front-month North Sea Brent crude futures reflected a decline of 1.1%, settling at $72.10 per barrel. Additionally, the Euro Stoxx 50 volatility index rose by 14.2%, reaching 21.27. A measurement above 20 indicates heightened market volatility, while values under 20 suggest more stable trading conditions..