- Honda and Nissan expected to begin merger talks
- 'Draconian' Vietnam internet law heightens free speech fears
- Israeli women mobilise against ultra-Orthodox military exemptions
- Asian markets track Wall St rally as US inflation eases rate worries
- Tens of thousands protest in Serbian capital over fatal train station accident
- Trump vows to 'stop transgender lunacy' as a top priority
- Daniels throws five TDs as Commanders down Eagles, Lions and Vikings win
- 'Who's next?': Misinformation and online threats after US CEO slaying
- Only 12 trucks delivered food, water in North Gaza Governorate since October: Oxfam
- Langers edge Tiger and son Charlie in PNC Championship playoff
- Explosive batsman Jacobs gets New Zealand call-up for Sri Lanka series
- Holders PSG edge through on penalties in French Cup
- Slovak PM Fico on surprise visit to Kremlin to talk gas deliveries
- Daniels throw five TDs as Commanders down Eagles
- Atalanta fight back to take top spot in Serie A, Roma hit five
- Mancini admits regrets over leaving Italy for Saudi Arabia
- Run machine Ayub shines as Pakistan sweep South Africa
- Slovak PM Fico on surprise visit to Kremlin
- Gaza rescuers say Israeli strikes kill 35
- 'Incredible' Liverpool must stay focused: Slot
- Maresca 'absolutely happy' as title-chasing Chelsea drop points in Everton draw
- Salah happy wherever career ends after inspiring Liverpool rout
- Three and easy as Dortmund move into Bundesliga top six
- Liverpool hit Spurs for six, Man Utd embarrassed by Bournemouth
- Netanyahu vows to act with 'force, determination' against Yemen's Huthis
- Mbappe back from 'bottom' as Real Madrid down Sevilla
- Ali hat-trick helps champions Ahly crush Belouizdad
- France kept on tenterhooks over new government
- Salah stars as rampant Liverpool hit Spurs for six
- Syria's new leader says all weapons to come under 'state control'
- 'Sonic 3' zips to top of N.America box office
- Rome's Trevi Fountain reopens to limited crowds
- Mbappe strikes as Real Madrid down Sevilla
- 'Nervous' Man Utd humiliated by Bournemouth
- Pope again condemns 'cruelty' of Israeli strikes on Gaza
- Lonely this Christmas: Vendee skippers in low-key celebrations on high seas
- Troubled Man Utd humiliated by Bournemouth
- 2 US pilots shot down over Red Sea in 'friendly fire' incident: military
- Man Utd embarrassed by Bournemouth, Chelsea held at Everton
- France awaits fourth government of the year
- Germany pledges security inquest into Christmas market attack
- Death toll in Brazil bus crash rises to 41
- Joshua bout only fight left for beaten Fury says promoter Hearn
- Odermatt stays hot to break Swiss World Cup wins record
- Neville says Rashford's career at Man Utd nearing 'inevitable ending'
- Syria's new leader vows not to negatively interfere in Lebanon
- Germany pledges security inquest after Christmas market attack
- Putin vows 'destruction' on Ukraine after Kazan drone attack
- Understated Usyk seeks recognition among boxing legends
- France awaits appointment of new government
European stocks slump at end of volatile week for markets
European stock markets tumbled Friday nearing the end of a highly volatile trading week worldwide as investors assessed the economy's recovery outlook faced with soaring inflation, rising interest rates and mixed earnings.
The week's trading has been dominated by Federal Reserve policy as the US central bank seeks to battle decades-high inflation by embarking on a series of interest rate hikes that could derail strong growth rebounds following pandemic lockdowns.
By contrast, the European Central Bank is sitting tight, putting pressure on the euro which Friday struck a 19-month low versus the dollar.
Rising tensions between Russia and the West over the Ukraine crisis are adding to the fractious mood on trading floors, where a selling frenzy this month wiped around $7 trillion off valuations around the world.
"Downbeat mood rounds up a volatile week for markets," said Victoria Scholar, head of investment at Interactive Investor.
"After an indiscriminate tech rout in recent weeks amid concerns about rising rates from the Fed, earnings season is helping to separate the wheat from the chaff with companies like Apple and Microsoft... managing to buck the broader weakness."
Apple on Thursday reported record quarterly revenue of $124 billion despite a global chip pinch and shifting impacts of the pandemic that have weighed down other big tech players.
Traders were also digesting growth data out of Europe's biggest economies.
The German economy ended 2021 on a downward note, shrinking by 0.7 percent in the fourth quarter as bottlenecks and coronavirus restrictions took their toll, official figures showed.
Last year Germany's economy grew by 2.8 percent, Friday's data added, far slower than its neighbour France, which expanded seven percent in 2021.
While stock markets have rallied for the best part of two years to record or multi-year highs, analysts said a hefty pullback is to be expected, owing to profit-taking and the removal of massive pandemic-era stimulus by central banks and governments.
- Oil gains -
Crude oil prices remained well supported after a strong trading week, aided by the Ukraine-Russia crisis.
"Russia's supply of natural gas to Western Europe could further spark volatility across financial markets, and as we turn the corner on the pandemic we now see a possible conflict as one of the biggest threats to markets in 2022," predicted Federated Hermes analyst Lewis Grant.
On Wall Street, all three main indices ended Thursday in the red, with the Nasdaq leading the way again as tech firms are more susceptible to higher borrowing costs.
- Key figures around 1145 GMT -
London - FTSE 100: DOWN 1.1 percent at 7,467.90 points
Frankfurt - DAX: DOWN 1.9 percent at 15,225.52
Paris - CAC 40: DOWN 1.6 percent at 6,909.83
EURO STOXX 50: DOWN 1.9 percent at 4,105.33
Tokyo - Nikkei 225: UP 2.1 percent at 26,717.34 (close)
Hong Kong - Hang Seng Index: DOWN 1.1 percent at 23,550.08 (close)
Shanghai - Composite: DOWN 1.0 percent at 3,361.44 (close)
New York - Dow: FLAT at 34,160.78 (close)
Euro/dollar: DOWN at $1.1132 from $1.1147 late Thursday
Pound/dollar: UP at $1.3387 from $1.3381
Euro/pound: DOWN at 83.15 pence from 83.27 pence
Dollar/yen: UP at 115.59 yen from 115.36 yen
Brent North Sea crude: UP 0.6 percent at $88.70 per barrel
West Texas Intermediate: UP 0.7 percent at $87.22 per barrel
F.Pavlenko--BTB