Market Overview

European stock markets closed lower on Friday, reacting to disappointing economic data from Germany. The country's industrial output in December reached its lowest level since 2020, casting a shadow over the continent's economic outlook.

Trade War Concerns

Investors are also wary of the potential impact of U.S. President Donald Trump's tariffs on China, Mexico, and Canada. The European Central Bank (ECB) has warned that these tariffs could harm the European economy, adding to the market's unease.

Market Performance

The DAX index fell by 0.63%, with Porsche leading the decline by dropping 7.12%. Similarly, the Euro Stoxx 50 decreased by 0.62%, and Pernod Ricard's shares fell by 4.69%. The CAC 40 index slid 0.43%, and Edenred's shares slumped by 4.56%. In the UK, the FTSE 100 dropped 0.31%, with Barratt Redrow shares declining by 4.02%.

Currency Movements

On the currency front, the euro weakened by 0.51% against the dollar, trading at $1.03361 by late afternoon CET. The pound sterling also decreased by 0.31% against the dollar, selling for $1.24000 shortly after.