Key facts
- European stocks closed lower on Friday, with the STOXX 600 index down 0.2%.
- Mining stocks led the decline, falling 2.1% due to easing commodity prices.
- Energy stocks rose 1.3%.
- Travel and leisure stocks fell 0.9% as oil prices increased.
- ASML shares dropped 1.1% following a report about advanced tool shipments to China.
- PPHE shares fell 15.8% after a takeover proposal from Fattal Hotel Group failed.
European shares edged lower on Friday, with mining stocks weighing on the broader market as commodity prices eased. The pan-European STOXX 600 index closed 0.2% down, though it still managed a 0.4% gain for the week. Investors remained cautious following stalled U.S.-Iran negotiations and a ceasefire agreement between Israel and Hezbollah in Lebanon.
Risk sentiment was shaky due to the uncertainty surrounding the Middle East conflict, although the ceasefire provided some relief. An uptick in oil prices sent travel and leisure stocks down 0.9%, while energy stocks climbed 1.3%.
Mining stocks were the biggest decliners, falling 2.1% as commodity prices eased. London-listed miners Antofagasta and Pan African Resources were among the hardest hit.
The STOXX 600 had reached record highs earlier in the week, buoyed by signs of progress in U.S.-Iran peace talks and the potential reopening of the Strait of Hormuz. However, analysts noted that investors are awaiting deal execution before fully committing.
Data showed German producer prices rose less than expected in May, offering some relief regarding high energy costs contributing to inflation. The European Central Bank is expected to pause interest rate hikes at its next meeting in July.
In corporate news, chip-equipment maker ASML saw its shares fall 1.1% after a report indicated U.S. officials were concerned about one of its advanced machines reaching China. Separately, Netherlands-based hotel group PPHE dropped 15.8% after its proposed £920.9 million ($1.2 billion) takeover by Israel's Fattal Hotel Group fell through.