The stock market across Europe plummeted on Friday trading and logged to its worst week since August as the euro gained ground against the US dollar while some corporate earnings report weighed in on equities. As a general rule, a stronger euro produces negative impact to shares in stock market.
The pan-European Stoxx 600 extended its losing streak as it edged down 0.4% at 388.69. The index had its worst week in three months after posting a weekly percentage decline of 1.8%. In the previous session, it fell 1.1%, the biggest daily drop in five months.
The worst weekly drop was spurred by the steep rise in the value of euro as it crept up to 1.1656 from 1.1643 for a weekly gain of 0.4% against the greenback as the European Central Bank extended its bond buying program until 2018, which slashed hopes for an interest rate hike.
United Kingdom’s FTSE 100 futures finished at 7 432.99 after dropping 0.7% to end the week with 1.7% loss while Spain’s IBEX 35 slid 0.5% to settle at 10 992.70 for a weekly loss of 2.6%.
Germany’s DAX 30 closed down 0.7% at 13 127.47 while France’s CAC 40 lost 0.5% at 5 380.72, with both indices posting more than 2% weekly decline.
Aside from the advancement of euro, the reports from Richemont SA, Cartier, and Montblanc disappointed investors last week, which spurred them to turn to selling activities of their investments.