12.09.202510:01:02UTC+00STOXX Pulls Back as Caution Builds on Fitch Decision

The STOXX 50 index, having initially shown gains, slipped by 0.3% to 5,370 on Friday, while the broader STOXX 600 experienced a slight decline of 0.1%. This shift in investor sentiment occurred as market participants adopted a more cautious stance ahead of Fitch's anticipated credit rating announcement for France scheduled for later today. Specifically, healthcare equities faced downward pressure after Goldman Sachs downgraded Novartis by 2.8%, citing increased competition from generic drugs. Additionally, luxury goods companies found themselves under duress following UBS's designation of the sector as "least preferred." In corporate developments, Banco Sabadell saw a 1% decline subsequent to its board's unanimous decision to reject BBVA's €15 billion acquisition proposal, advising shareholders against parting with their shares. Despite Friday's downturn, the STOXX 50 remained positioned for its first weekly gain in three weeks, buoyed by robust U.S. labor data that bolstered expectations of imminent interest rate cuts by the Federal Reserve. Concurrently, the European Central Bank conveyed that its monetary easing efforts have concluded, with President Christine Lagarde affirming that the bank is in a "good place" and that growth risks are now more balanced.