European stocks end turbulent week lower as Volkswagen rebound offsets broader pressure

  • European stocks ended the week lower as geopolitical tensions and rate concerns pressured markets.
  • 649.88 points marked the Stoxx 600 close after a 0.1% Friday gain.
  • Volkswagen rose 5.9% after its board reached a labor and shareholder agreement.

European equities closed a turbulent week lower as geopolitical tensions, persistent inflation and expectations of further monetary tightening outweighed a late rebound led by Volkswagen. The Stoxx 600 rose 0.1% on Friday to 649.88 points but declined 0.8% over the week. A resilient U.S. non-farm payrolls report reinforced expectations that the Federal Reserve could raise interest rates later this month, while investors await U.S. consumer inflation data for further guidance. Brent crude traded near $96 a barrel and was headed for its strongest weekly gain since mid-July, increasing pressure on energy-import-dependent European economies. Volkswagen gained 5.9% after its supervisory board reached a turnaround agreement that avoided an escalation with unions and shareholder Lower Saxony, although the stock remains down 22% this year. Attention now turns to next week's European Central Bank meeting, where a 25-basis-point increase is widely expected; JPMorgan and BNP Paribas also forecast another hike in December.

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