European Shares Falter Amid Global Economic Skepticism

European shares declined, influenced by weak earnings reports, concerns about U.S. policy impacts, and rising Treasury yields. The STOXX 600 index fell as economic apprehension spread globally. Additionally, U.S. equities dipped after Federal Reserve Chair Jerome Powell resisted aggressive interest rate cuts, further pressuring markets.

European shares took a hit on Friday, influenced by disappointing earnings figures and concerns over U.S. President-elect Donald Trump's potential policies affecting international economies and businesses. The pan-European STOXX 600 index slipped 0.8%, hovering just above a three-month low hit earlier this week.

Contributing to the global economic apprehension, U.S. stocks also experienced a downturn after Federal Reserve Chair Jerome Powell stated there was no imperative to promptly reduce interest rates. This stance led to an increase in U.S. Treasury yields, putting additional pressure on equities. "A week of indecision for stock markets is ending on a weaker note," noted Chris Beauchamp, chief market analyst at IG.

Attention remained on the U.S.-China relations as Trump considered appointing a China hawk for secretary of state, renewing unease in European equities. The pharmaceutical sector fell, impacted by Trump's selection of vaccine skeptic Robert F. Kennedy Jr. for a key health role. Furthermore, market sentiment was dampened by downbeat technology earnings and geopolitical energy shifts.

(With inputs from agencies.)