Europe close: Stocks fall in quiet trade; inflation data in focus

(Sharecast News) - European stocks fell on a quiet Halloween Friday, as investors paused for breath ahead of the weekend and assessed the European Central Banks's decision to keep rates on hold. The benchmark Stoxx 600 index ended down 0.5% at 571.89, with France's CAC 40 down 0.4% at 8,121.07 and Germany's DAX 0.7% lower at 23,958.30.

European interest rates were kept on hold at 2% on Thursday, in line with expectations and the third such consecutive move.

According to data released earlier on Friday, eurozone inflation fell to 2.1% from 2.2%.

Trade Nation said: "The latest flash estimates for Eurozone inflation came in roughly in line with market expectations. Core CPI rose 2.4% year-on-year, slightly above the 2.3% expected, but unchanged from the upwardly revised prior reading.

"Headline CPI rose 2.1% as expected, and a touch below the previous update of 2.2%. In any case, eurozone inflation continues to be much closer to its 2% target than either the US (3.0%) or the UK (3.8%), giving the European Central Bank enough room to ease monetary policy further to try and boost tepid growth.

"Yesterday, flash GDP data showed the eurozone economy grew 0.2% in Q3, narrowly beating forecasts of 0.1%. The modest growth figure underscored the region's fragile recovery amid slowing manufacturing and persistent fiscal strain.

"Just after this data was released, the ECB decided to keep interest rates unchanged. It held its deposit facility rate at 2% for a third consecutive meeting, maintaining a cautious stance."

In regional economic news, German retail sales rose 0.2% in September compared with the prior month, federal statistics office Destatis said. The year-on-year figure was unchanged.

Food retail sales rose 0.3% month-on-month, while non-food sales were down 0.6%. Internet and mail-order trade increased 0.4% compared with August and 3.7% compared to September 2024.

In equity news, shares in industrial lubricants maker Fuchs rose as it beat third-quarter earnings estimates.

Cosmetics company Puig surged after solid quarterly earnings posted on Thursday, while Scor tumbled as weak margins offset a profit beat by the French insurer.