European Stocks Waver Amid Stimulus Anticipation and Budget Strains

European stocks edged down on Friday, with French markets underperforming after France revealed its 2025 budget focused on reducing the fiscal deficit. Investors remained cautious awaiting China’s stimulus announcements. The STOXX 600 saw a slight weekly decline, while Stellantis and Sainsbury's faced share price drops.

European stocks took a hit on Friday as investors anxiously awaited updates regarding China's anticipated stimulus measures. French markets were particularly affected following the government's unveiling of a budget set for 2025, intended to address France's burgeoning fiscal deficit.

The STOXX 600 index across the continent declined by 0.2%, concluding a tumultuous week and positioning the benchmark for a weekly loss. France's CAC 40 slipped 0.4% after the government outlined plans for 60 billion euros in spending cuts and new taxes targeting the affluent and large corporations.

All eyes were on ratings agency Fitch, which was scheduled to re-evaluate France's debt status late on Friday. Meanwhile, anticipation was mounting for China's finance ministry press conference on Saturday, as many investors hoped for significant stimulus declarations to be made.

In individual stock movements, Chrysler parent company Stellantis fell by 1.2% after confirming that CEO Carlos Tavares will retire in early 2026. Meanwhile, Sainsbury's shares tumbled by 4% following a significant share sale by the Qatar Investment Authority, the supermarket's largest shareholder.

(With inputs from agencies.)