European Shares Slip Amid Market Volatility and Mercedes Profit Warning

European shares fell on Friday, affected by a decline in Mercedes-Benz shares due to a reduced profit outlook. The STOXX 600 index dropped 0.4% but was still on track for weekly gains. Investors are focused on upcoming euro zone consumer confidence data for more economic insights.

European shares slipped on Friday, following a previous rally spurred by the U.S. Federal Reserve's significant interest rate cut. This downturn was marked by a steep decline in Mercedes-Benz shares, which faced their worst day in 15 months after the company lowered its core profit outlook.

The pan-European STOXX 600 index fell 0.4% to 519.52 points as of 0710 GMT but remained on course for a second consecutive week of gains. Despite a general downward trend, Spain's market edged up 0.1%, while automobile shares led sectoral losses with a more than 3% drop, largely due to a 7.6% decline in Mercedes-Benz shares.

Germany's DAX slid 0.7%, and Britain's FTSE 100 decreased by 0.6%, particularly after a survey revealed a sharp drop in consumer confidence. Investors are now focusing on the upcoming euro zone consumer confidence data for September, expected at 1400 GMT, for further economic insights. Novo Nordisk saw a 0.5% rise after the European Medicines Agency backed its drug Wegovy for easing heart failure in obese individuals.

(With inputs from agencies.)