European stock markets concluded the week on a lower note during Friday trading, with The Stoxx Europe declining by 0.76%. Germany's DAX decreased by 0.23%, the FTSE in London fell by 0.09%, France's CAC dropped by 0.58%, and the Swiss Market Index ended 1.33% lower. The economy of the European Union is gradually returning to modest growth following an extended period of stagnation.
The European Commission's Autumn Forecast indicates continued disinflation, projecting GDP growth of 0.9% in the EU and 0.8% in the euro area for 2024. Economic activity is expected to pick up, with forecasts predicting 1.5% growth in the EU and 1.3% in the euro area for 2025, elevating to 1.8% in the EU and 1.6% in the euro area by 2026. In the UK, GDP saw an estimated increase of 0.1% in Q3, following a robust growth rate of 0.5% the preceding quarter, as reported by the Office for National Statistics.
Year-on-year, GDP is projected to have risen by 1%. However, monthly GDP contracted by 0.1% in September, primarily due to declines in manufacturing output and information and communication services, as stated by ONS. In France, the consumer price index registered a 0.3% increase in October from September's 1.2% decline, per the Institute for Statistics and Economic Studies.
Annual inflation rose to 1.2% in October, up from September's rate of 1.1%. Italy's consumer price index remained unchanged in October compared to the previous month, reflecting an annual rise of 0.9%, according to data from the Italian National Institute of Statistics. Switzerland saw an estimated economic output rise of 0.2% in Q3, with growth in the service sector countered by a downturn in industrial performance, according to a flash estimate from the Swiss Federal Statistical Office. In corporate news, major British oil and gas companies BP and Shell, alongside France's TotalEnergies and Norwegian refiner Equinor, announced a $500 million joint investment commitment to support the UN Sustainable Development Goal 7 initiative.
This collaboration will focus on projects primarily across Sub-Saharan Africa and South and Southeast Asia. British mining giant Rio Tinto stated its partnership with the Wildlife Conservation Society and Everland, aiming to invest $16 million into Madagascar's Makira Natural Park REDD+ Project. The company also revealed it has entered into agreements with GravitHy, aimed at advancing their steel decarbonization project in France, although financial specifics were not disclosed. Dutch telecommunications firm VEON confirmed it has successfully registered and obtained a commercial license for its branch office located in the Dubai International Financial Centre.
This strategic move aligns with the company's plan to shift its headquarters from Amsterdam to Dubai. European pharmaceutical stocks experienced notable declines in Friday's trading session following the nomination of Robert F. Kennedy Jr., a prominent vaccine critic, for the US Health and Human Services Secretary position.
GSK and AstraZeneca shares plummeted by 3.9% and 3.3%, respectively, on the FTSE in London, while Merck and Bayer saw drops of 2% and 1.6% in Frankfurt, and Sanofi lost 3.6% in Paris..