European stocks retreat further before US inflation data [Video]

European stock markets slid for a second session running Friday and the dollar dropped as investors grow concerned about the economic outlook for next year.

All eyes will be on US inflation data later in the session to see if it alters interest-rate cut expectations for the world’s biggest economy.

The Federal Reserve this week trimmed US borrowing costs but signalled fewer cuts than had been expected for 2025.

Oil prices have also fallen since the Fed announcement.

“Markets remain cautious ahead of US inflation figures,” noted Derren Nathan, head of equity research at stockbrokers Hargreaves Lansdown.

Paris and Frankfurt were down about 1.2 percent in late morning trade, while London lost 1.1 percent.

All three indices shed similar amounts by the close Thursday.

Leading Asian equity markets ended the week with slight losses after Wall Street steadied.

Traders are awaiting the release Friday of data on US personal consumption expenditure — the Fed’s preferred gauge of inflation and …