- Barry Adams
- 27 Feb, 2023
- New York City
Market indexes pared back early gains and investors renewed focus on economic growth on the first day of trading this week after the worst week in 2023.
Treasury yields were in focus and yields on 2-year and 10-year notes edged lower but the yields on 6-month and one-year Treasury bills traded above 5% for the second week in a row.
Market sentiment vacillated between rate-path worries and strength of the economy in the face of rates above 5% and mortgage rates above 6.5%.
But corporate results are signaling that earnings recession may have already begun for more companies in the face higher input and operating costs.
So far, companies have been reporting a sharp decline in quarterly and annual earnings following a surge in 2021 because companies are struggling to pass higher costs to customers and are facing rising costs and wage pressures.
Earnings are expected to remain depressed for the rest of the year as companies adjust to higher operating costs and lower revenue growth in the face of higher interest rates and stable consumer spending.
Retailers are still struggling with high levels of inventories and tough comparisons with previous years and consumers shift focus to experiences from goods.
This week more than 600 companies are scheduled to report earnings, including results from Zoom Video, Advance Auto Parts, AutoZone, HP Inc, Abercrombie & Fitch, American Eagle Outfitters, Dollar Tree, Kohl's, Lowe's. Best Buy and Big Lots.
Moreover, investors reacted positively to the fall in durable goods orders supporting the case that the economy is not overheating and pending home sales expanded for the second month in a row.
Durable goods orders declined in January and pending home sales improved for the second month in a row.
Investors bid up stocks and look ahead to earnings from retailers as the earnings season slows down.
Pending Home Sales Index Improved In January
Pending home sales, an index of forward looking home sales, increased for the second month in a row, the National Association of Realtors.
Pending home sales increased 8.1% In January from the previous month, following a downwardly revised 1.5% gain in December.
Despite the back-to-back monthly improvement, the home sale index showed home sales activities dropped 24.1% from a year ago.
“Buyers responded to better affordability from falling mortgage rates in December and January,” said NAR Chief Economist Lawrence Yun.
The Northeast home sales index rose 6.0% from last month to 68.7, a fall of 19.8% from January 2022.
The Midwest index increased 7.9% to 83.3 in January, a sharp drop of 21.1% from one year ago.
The South index increased 8.3% to 99.2 in January, dipping 24.7% from the prior year. The West index jumped 10.1% in January to 66.2 but fell 29.3% from a year ago.
“An extra bump occurred in the West region because of lower home prices, while gains in the South were due to stronger job growth in that region,” Yun added.
“Home sales activity looks to be bottoming out in the first quarter of this year, before incremental improvements will occur,” Yun said.
Durable Goods Orders Dropped In January
Durable goods orders declined in January 4.5% from the previous month, according to the latest data released by the U.S. Census Bureau.
December durable goods orders were downwardly revised to an increase of 5.1% on the 13.3% plunge in transportation orders.
Shipments of manufactured durable goods in January decreased 0.1%, down following sixteen consecutive monthly increases. This followed a 0.4% increase in December.
Transportation equipment fell 1.7%, down following ten consecutive monthly increases.
Market Indexes and Yields
The S&P 500 index increased 0.3% to 3,982.24 and the Nasdaq Composite index advanced 0.6% to 11,466.98.
The yield on 2-year Treasury notes inched lower to 4.78%, 10-year Treasury notes eased to 3.92% and 30-year Treasury bonds hovered near 3.93%.
Crude oil prices declined 56 cents to $75.75 a barrel and natural gas prices inched up 16 cents to $2.71 a thermal unit.
U.S. Movers
Berkshire Hathaway declined 0.6% to $458,543.40 after the conglomerate of businesses reported a decline in operating earnings but the company stepped up its stock repurchases.
Berkshire Hathaway said operating earnings in the fourth quarter declined 8% to $6.7 billion from $7.3 billion and net income attributable to shareholders fell to $18.2 billion from $39.6 billion a year ago. Diluted earnings per Class A Share fell to $12,412 from $26,690 and Class B Share dropped to $8.27 from $17.79 in the previous year.
In 2022, operating earnings rose to $30.8 billion from $27.4 billion a year ago and net earnings attributable to shareholders swung to ($22.8 billion) from $89.8 billion and diluted earnings per Class A Shares to ($15,539) from $59,460 in the previous year.
Berkshire repurchased $2.6 billion of its own shares during the fourth quarter bringing the total for the year to approximately $7.9 billion.
Zoom Video Communications Inc soared 7.7% to $79.40 in the afterhours trading after the company reported better-than-expected earnings.
Zoom said revenue in the fourth quarter increased 4% to $1.1 billion and the company swung to a net loss of $104.4 million from a profit of $490.5 million.
The earnings per share was ($0.36) compared to $1.60 a year ago.
Revenue in the fiscal year ending in January increased 7.0% to $4.4 billion and net income dropped to $103.7 million from $1.4 billion and diluted earnings per share dropped to 34 cents from $4.50 a year ago.
The company guided fiscal first quarter revenue between $1.080 and $1.085 billion and adjusted-diluted earnings per share between 96 cents and 98 cents per share.
European Markets Advanced Following Earnings Optimism
European markets traded higher after a week of losses and looked ahead to a busy week of earnings.
Market sentiment was positive after indexes dropped the most in the previous week in 2023 on the hopes that the Euro Area economy will avoid a recession.
Investors also noticed that large corporations are reporting better earnings than their competitors in Asia and the United States, despite higher energy costs.
In economic news, lending growth in the euro zone declined in January and confidence index fell marginally in the currency block but lending growth continued to decelerate following tighter monetary policy.
Euro Area Economic Confidence Index Fell Marginally
The economic confidence index in the Euro Area unexpectedly declined in January, a survey from the Economic Commission showed Monday.
The confidence index decreased to 99.7 in January from 99.8 in December, a decline for the first time in three months.
The confidence index monitoring expectations among manufacturers declined 0.5 in February from 1.2 in January and among service providers eased to 9.5 from 10.4 in the corresponding period.
Despite the looming worries of consumer spending, the confidence index among retailers improved to -0.1 in February from -0.7 in January and among construction managers improved to 1.8 from 1.4 in the corresponding period.
Euro Area Credit Growth Slowed In January
The annual rate of growth in credit to the private sector declined in January, reflecting the ongoing monetary policy tightening.
The credit growth slowed to 3.8% in December from 4.3% in January, the European Central Bank reported Monday.
Annual growth rate of broad monetary aggregate M3 decreased to 3.5% in January 2023 from 4.1% in December and narrower monetary aggregate M1, comprising currency in circulation and overnight deposits, decreased to -0.7% in January from 0.6% in December, the central bank noted.
The European Central Bank has lifted its key lending rate by 300 basis points since July to tame inflation by gradually lifting rates to restrictive rates and curtailing economic activities.
Annual growth rate of adjusted loans to households decreased to 3.6% in January from 3.8% in December and adjusted loans to non-financial corporations decreased to 6.1% in January from 6.3% in December.
M3 money supply growth has been slowing from the recent peak in September last year and lending growth to businesses or corporations slowed for the third month in a row.
Market Indexes and Yields
The DAX index increased 1.1% to 15,381.43, the CAC-40 index advanced 1.5% to 7,295.55 and the FTSE 100 index added 0.7% to 7,935.11.
The yield on 10-year German Bunds inched higher to 2.58%, on French bonds edged up to 3.05%, UK gilts to 3.80% and Italian bonds to 4.42%.
The euro edged up to $1.060, the British pound increased to $1.205 and the Swiss franc edged higher to 93.61 cents.
Brent crude oil fell 86 cents to $82.69 a barrel and the Dutch TTF natural gas spot price fell Є3.71 to Є47.30 per MWh.
Europe Stock Movers
Airbus SE increased 1.4% to €123.64 after the aviation group lifted its estimate of future demand for aircrafts in the next two decades on higher expectations of air travel and freight demand in the Pacific region.
Thales SA increased 0.5% to €133.75 after the French defense company said it plans to hire 12,000 new employees in 2023 to support its expected business growth.
The aerospace and cyber security company said it plans to add 5,500 new employees in France, 1,050 in the United Kingdom, 600 in Australia, 550 in India and 540 in the United States
Associated British Foods Plc increased 2.2% to 1,989.80 pence after the UK-based diversified conglomerate reported first-half revenue to increase 20% at actual exchange rates and 16% in constant currency.
Primark sales are expected to rise 19% to £4.2 billion and adjusted operating profit margin is expected to be above 8%.
The company also lifted its annual outlook and said adjusted operating profit and adjusted earnings per share are "expected to be inline with previous financial year."
Bunzl Plc increased 2.4% to 3,085.0 pence after the company reported an increase in pre-tax profit.
In 2022, revenue increased 17.1% to £12.03 billion and adjusted pre-tax increased 17.2% to £818.0 million from £698.2 million a year ago.
The maker of cigarette filters and tissue paper and outsourcing company increased its divided 10% to 141.7 pence from 132.7 pence in 2021.
- Bridgette Randall
- 27 Feb, 2023
- New York City
European markets traded higher after a week of losses and looked ahead to a busy week of earnings.
Market sentiment was positive after indexes dropped the most in the previous week in 2023 on the hopes that the Euro Area economy will avoid a recession.
Investors also noticed that large corporations are reporting better earnings than their competitors in Asia and the United States, despite higher energy costs.
In economic news, lending growth in the euro zone declined in January and confidence index fell marginally in the currency block but lending growth continued to decelerate following tighter monetary policy.
Euro Area Economic Confidence Index Fell Marginally
The economic confidence index in the Euro Area unexpectedly declined in January, a survey from the Economic Commission showed Monday.
The confidence index decreased to 99.7 in January from 99.8 in December, a decline for the first time in three months.
The confidence index monitoring expectations among manufacturers declined 0.5 in February from 1.2 in January and among service providers eased to 9.5 from 10.4 in the corresponding period.
Despite the looming worries of consumer spending, the confidence index among retailers improved to -0.1 in February from -0.7 in January and among construction managers improved to 1.8 from 1.4 in the corresponding period.
Euro Area Credit Growth Slowed In January
The annual rate of growth in credit to the private sector declined in January, reflecting the ongoing monetary policy tightening.
The credit growth slowed to 3.8% in December from 4.3% in January, the European Central Bank reported Monday.
Annual growth rate of broad monetary aggregate M3 decreased to 3.5% in January 2023 from 4.1% in December and narrower monetary aggregate M1, comprising currency in circulation and overnight deposits, decreased to -0.7% in January from 0.6% in December, the central bank noted.
The European Central Bank has lifted its key lending rate by 300 basis points since July to tame inflation by gradually lifting rates to restrictive rates and curtailing economic activities.
Annual growth rate of adjusted loans to households decreased to 3.6% in January from 3.8% in December and adjusted loans to non-financial corporations decreased to 6.1% in January from 6.3% in December.
M3 money supply growth has been slowing from the recent peak in September last year and lending growth to businesses or corporations slowed for the third month in a row.
Market Indexes and Yields
The DAX index increased 1.1% to 15,381.43, the CAC-40 index advanced 1.5% to 7,295.55 and the FTSE 100 index added 0.7% to 7,935.11.
The yield on 10-year German Bunds inched higher to 2.58%, on French bonds edged up to 3.05%, UK gilts to 3.80% and Italian bonds to 4.42%.
The euro edged up to $1.060, the British pound increased to $1.205 and the Swiss franc edged higher to 93.61 cents.
Brent crude oil fell 86 cents to $82.69 a barrel and the Dutch TTF natural gas spot price fell Є3.71 to Є47.30 per MWh.
Europe Stock Movers
Airbus SE increased 1.4% to €123.64 after the aviation group lifted its estimate of future demand for aircrafts in the next two decades on higher expectations of air travel and freight demand in the Pacific region.
Thales SA increased 0.5% to €133.75 after the French defense company said it plans to hire 12,000 new employees in 2023 to support its expected business growth.
The aerospace and cyber security company said it plans to add 5,500 new employees in France, 1,050 in the United Kingdom, 600 in Australia, 550 in India and 540 in the United States
Associated British Foods Plc increased 2.2% to 1,989.80 pence after the UK-based diversified conglomerate reported first-half revenue to increase 20% at actual exchange rates and 16% in constant currency.
Primark sales are expected to rise 19% to £4.2 billion and adjusted operating profit margin is expected to be above 8%.
The company also lifted its annual outlook and said adjusted operating profit and adjusted earnings per share are "expected to be inline with previous financial year."
Bunzl Plc increased 2.4% to 3,085.0 pence after the company reported an increase in pre-tax profit.
In 2022, revenue increased 17.1% to £12.03 billion and adjusted pre-tax increased 17.2% to £818.0 million from £698.2 million a year ago.
The maker of cigarette filters and tissue paper and outsourcing company increased its divided 10% to 141.7 pence from 132.7 pence in 2021.
- Brian Turner
- 27 Feb, 2023
- New York City
Durable goods orders declined in January 4.5% from the previous month, according to the latest data released by the U.S. Census Bureau.
December durable goods orders were downwardly revised to an increase of 5.1% on the 13.3% plunge in transportation orders.
Shipments of manufactured durable goods in January decreased 0.1%, down following sixteen consecutive monthly increases. This followed a 0.4% increase in December.
Transportation equipment fell 1.7%, down following ten consecutive monthly increases.
Orders for durable goods increased 3.0% from a year ago in January and shipments rose 7.6% in the same period.
- Brian Turner
- 27 Feb, 2023
- New York City
Pending home sales, an index of forward looking home sales, increased for the second month in a row, the National Association of Realtors.
Pending home sales increased 8.1% In January from the previous month, following a downwardly revised 1.5% gain in December.
Despite the back-to-back monthly improvement, the home sale index showed home sales activities dropped 24.1% from a year ago.
“Buyers responded to better affordability from falling mortgage rates in December and January,” said NAR Chief Economist Lawrence Yun.
The Northeast home sales index rose 6.0% from last month to 68.7, a fall of 19.8% from January 2022.
The Midwest index increased 7.9% to 83.3 in January, a sharp drop of 21.1% from one year ago.
The South index increased 8.3% to 99.2 in January, dipping 24.7% from the prior year. The West index jumped 10.1% in January to 66.2 but fell 29.3% from a year ago.
“An extra bump occurred in the West region because of lower home prices, while gains in the South were due to stronger job growth in that region,” Yun added.
“Home sales activity looks to be bottoming out in the first quarter of this year, before incremental improvements will occur,” Yun said.
- Barry Adams
- 27 Feb, 2023
- New York City
Stocks rebounded on the first day of trading this week after the worst week in 2023.
Treasury yields were in focus and yields on 2-year and 10-year notes edged lower but the yields on 6-month and one-year Treasury bills traded above 5% for the second week in a row.
So far, companies have been reporting a sharp decline in quarterly and annual earnings following a surge in 2021 because companies are struggling to pass higher costs to customers and are facing rising costs and wage pressures.
Earnings are expected to remain depressed for the rest of the year as companies adjust to higher operating costs and lower revenue growth in the face of higher interest rates and stable consumer spending.
Retailers are still struggling with high levels of inventories and tough comparisons with previous years and consumers shift focus to experiences from goods.
This week more than 600 companies are scheduled to report earnings, including results from Zoom Video, Advance Auto Parts, AutoZone, HP Inc, Abercrombie & Fitch, American Eagle Outfitters, Dollar Tree, Kohl's, Lowe's. Best Buy and Big Lots.
Moreover, investors reacted positively to the fall in durable goods orders supporting the case that the economy is not overheating and pending home sales expanded for the second month in a row.
Durable goods orders declined in January and pending home sales improved for the second month in a row.
Investors bid up stocks and look ahead to earnings from retailers as the earnings season slows down.
Pending Home Sales Index Improved In January
Pending home sales, an index of forward looking home sales, increased for the second month in a row, the National Association of Realtors.
Pending home sales increased 8.1% In January from the previous month, following a downwardly revised 1.5% gain in December.
Despite the back-to-back monthly improvement, the home sale index showed home sales activities dropped 24.1% from a year ago.
“Buyers responded to better affordability from falling mortgage rates in December and January,” said NAR Chief Economist Lawrence Yun.
The Northeast home sales index rose 6.0% from last month to 68.7, a fall of 19.8% from January 2022.
The Midwest index increased 7.9% to 83.3 in January, a sharp drop of 21.1% from one year ago.
The South index increased 8.3% to 99.2 in January, dipping 24.7% from the prior year. The West index jumped 10.1% in January to 66.2 but fell 29.3% from a year ago.
“An extra bump occurred in the West region because of lower home prices, while gains in the South were due to stronger job growth in that region,” Yun added.
“Home sales activity looks to be bottoming out in the first quarter of this year, before incremental improvements will occur,” Yun said.
Durable Goods Orders Dropped In January
Durable goods orders declined in January 4.5% from the previous month, according to the latest data released by the U.S. Census Bureau.
December durable goods orders were downwardly revised to an increase of 5.1% on the 13.3% plunge in transportation orders.
Shipments of manufactured durable goods in January decreased 0.1%, down following sixteen consecutive monthly increases. This followed a 0.4% increase in December.
Transportation equipment fell 1.7%, down following ten consecutive monthly increases.
Market Indexes and Yields
The S&P 500 index increased 0.7% to 3,998.10 and the Nasdaq Composite index advanced 0.8% to 11,485.94.
The yield on 2-year Treasury notes inched lower to 4.79%, 10-year Treasury notes eased to 3.91% and 30-year Treasury bonds hovered near 3.92%.
Crude oil prices declined 65 cents to $76.66 a barrel and natural gas prices inched up 9 cents to $2.64 a thermal unit.
U.S. Movers
Berkshire Hathaway declined 0.6% to $458,543.40 after the conglomerate of businesses reported a decline in operating earnings but the company stepped up its stock repurchases.
Berkshire Hathaway said operating earnings in the fourth quarter declined 8% to $6.7 billion from $7.3 billion and net income attributable to shareholders fell to $18.2 billion from $39.6 billion a year ago. Diluted earnings per Class A Share fell to $12,412 from $26,690 and Class B Share dropped to $8.27 from $17.79 in the previous year.
In 2022, operating earnings rose to $30.8 billion from $27.4 billion a year ago and net earnings attributable to shareholders swung to ($22.8 billion) from $89.8 billion and diluted earnings per Class A Shares to ($15,539) from $59,460 in the previous year.
Berkshire repurchased $2.6 billion of its own shares during the fourth quarter bringing the total for the year to approximately $7.9 billion.
Zoom Video Communications Inc decreased 0.2% to $73.84 ahead of the company's earnings release after the close of regular market hours.
Zoom reported third quarter revenue increased 5% to $1.1 billion and net income attributable to shareholders was $48.4 million and diluted earnings per share of 16 cents.
In the fourth quarter a year ago, Zoom reported revenue increased 21% to $1.07 billion and net income was $490.5 million or $1.60 a diluted share.
- Barry Adams
- 24 Feb, 2023
- New York City
Stocks accelerated decline on the final day of the week and benchmark indexes reported the worst weekly loss in 2023.
The familiar worry of rate-path drove the market sentiment after the personal consumption expenditure price index accelerated in January from the previous month and from a year ago.
The PCE index gets an outsized attention because of the Federal Reserve's use of this alternative measure of inflation.
The index generally understates by a wide margin the inflation experienced by most urban households and the increase in this index only suggested that inflationary pressures are stronger than previously estimated.
Benchmark indexes dropped between 1% and 2% on the worries that interest rates are likely to go higher and stay elevated for a longer duration.
Moreover, the Federal Reserve may have to raise rates to restrictive levels which may drive the economy into a recession.
Steel, tobacco, software developers and commercial real estate stocks fell between 2% and 3%.
Microsoft declined 2.2%, Apple Ind fell 1.8, Amazon.com, Inc eased 2.4% and Alphabet Inc declined 1.9%.
New Home Sales Rebounded In January
The sale of single-family new homes increased 7.2% from the previous month in January to a seasonally adjusted annual rate of 670,000, the U.S. Census Bureau and Department of Housing and Urban Development reported Friday.
Home sales declined 19.4% from a year ago in January.
The median sales price of new houses sold in January was $427,500, lower than $430,000 a year ago and the average sales price was $474,400, lower than $501,200 a year ago.
The seasonally‐adjusted estimate of new homes for sale at the end of January was 439,000, representing a supply of 7.9 months at the current sales rate.
Personal Income and Spending Increased in January
Personal income increased 0.6% in January and disposable personal income 2.0% and personal consumption expenditures or PCE 1.8%, according to estimates released by the Bureau of Economic Analysis on Friday.
The closely watched consumption price index, a measure of inflation tracked by the Federal Reserve, rose at a faster pace from the previous month.
The increase was the largest since August.
The PCE price index and core index excluding food and energy both accelerated to 0.6% in January compared to 0.2% and 0.4% increases in December.
On an annual basis the PCE index and core index accelerated to 5.2% and 4.7% from 5.3% and 4.6% respectively.
Personal spending jumped 1.8% in January from the previous month, rebounding from a downwardly revised 0.1% fall in December.
Personal spending jumped the most since March of 2021.
After adjusting for inflation or price changes, real personal spending jumped 1.1%, rebounding from a 0.3% decrease in December.
Bond Yields Advanced, Stock Indexes Dipped
The S&P 500 index decreased 1.05% to 3,970.05 and the Nasdaq Composite index declined 1.7% to 11,394.94.
For the week, the S&P 500 index close down 2.8% and the Nasdaq Composite index fell 3.2% and book a second weekly loss in the last three weeks.
The yield on 2-year Treasury notes increased to 4.81%, 10-year Treasury notes rose to 3.95% and 30-year Treasury bonds 3.94%.
Crude oil increased $1.09 to $76.46 a barrel and natural gas futures added 13 cents to $2.56 a thermal unit.
U.S. Stock Movers
Carvana Company plunged 20.5% to $8.05 after the used car dealer reported a sharp fall in revenue and a surge in loss in its latest quarter.
Carvana said operating revenue in the fourth quarter plunged 24% to $2.8 billion from $3.7 billion in the previous year.
Net loss in the period surged to $809 million from $89 million or diluted loss per share rose to $7.61 from $1.02 a year ago.
Wayfair Inc fell 1.7% to $37.69 after the company reported a decline in sales and larger loss in its latest quarter.
Wayfair said revenue in the fourth quarter decreased 4.6% to $3.1 billion and net loss expanded to $351 million from $202 million and diluted loss per share rose to $3.26 from $1.92 a year ago.
Boeing Halted 787 Dreamliners Deliveries Again
Boeing Co fell 4.8% after the aerospace company temporarily halted delivery of its 787 Dreamliners to fix a fuselage issue, according to statements from the company and the aviation regulator.
"While near-term deliveries will be impacted, at this time we do not anticipate a change to our production and delivery outlook for the year,” said the company in a statement.
Boeing plans to continue building planes during the current pause in delivery after the completed the delivery of 34 787 Dreamliners in the six months to January of this year.
The aerospace and defense company was forced to halt deliveries between May of 2021 and July of 2022 to fix quality problems during its assembly operations.
European Markets Turned Lower After U.S. Inflation Measure Accelerated
Stocks dropped, bond yields rose and currencies looked down in Europe after inflation worries accelerated U.S. market decline.
Stocks accelerated decline in Europe after the latest report on a measure of inflation accelerated in January.
The closely watched consumption price index, a measure of inflation tracked by the U.S. Federal Reserve, rose at a faster pace from the previous month. The increase was the largest since August.
On the inflation news, market indexes in New York fell as much as 2% and darkened the mood in Europe.
Moreover, Germany's fourth quarter economic decline was revised to a deeper correction than previously estimated, negatively impacting market sentiment.
Investors overlooked the improvement in the forward looking consumer confidence for March in Germany for the fifth month in a row and a slight rebound in consumer confidence in February to its highest level in more than a year in the UK.
The research group GfK said British consumer confidence increased by seven points to -38, the highest since April 2022, and Germany's confidence index improved to -30.5 in March from -33.8 in February.
The French consumer confidence index fell slightly in February, according to the data released by the statistical office INSEE.
The index decreased to 82 in February from 83 in January, reflecting moderate weakness in the financial outlook of households.
Larger Decline in Germany's Economy In Fourth Quarter
Germany's gross domestic product shrank more-than-expected in the fourth quarter, the Federal Statistics Office or DeStatis said in a report.
Gross domestic product in the fourth quarter declined 0.4% from the previous quarter compared to the previous estimate of 0.2% fall in a preliminary report.
The German economy expanded in each of the first three quarters when measured from the previous three month period.
Economy expanded 0.8% in the first quarter, slowed to 0.1% in the second quarter and regained momentum in the third quarter to 0.5%.
The latest decline was the worst since the first quarter of 2021, when the economy shrank 1.5% following the Covid-19 pandemic.
For the full-year 2022, the economy expanded 1.8% and when adjusted for calendar shift rose 1.9%, the statistical office noted.
European Bond Yields Advanced, Currencies Weakened
The DAX index declined 1.7% to 15,209.74, the CAC-40 index dropped 1.8% and the FTSE 100 index fell 0.4% to 7,878.66.
For the week, the DAX index decreased 1.5%, the CAC-40 index declined 1.8% and the FTSE 100 index fell 1.2%.
The yield on 10-year German Bunds increased to 2.52%, French bonds to 3.00%, the UK gilts to 3.65% and Italian bonds to 4.43%.
The euro edged lower to $1.05, the British pound decreased to $1.194 and the Swiss franc edged lower to 94.03 cents.
Brent crude oil advanced 96 cents to $83.19 a barrel and the Dutch TTF natural gas increased 41 cents to Є51.01 per MWh.
Europe Stock Movers
Compagnie de Saint Gobain SA increased 4.8% to €55.93 after the French building materials maker reported record annual revenues.
In addition, the French glass maker plans to set aside "at least €400 million" for its stock repurchase program in 2023.
International Consolidated Airlines Group declined 3.7% to 159.34 pence after the parent of British Air and Iberian Air announced a deal to acquire the remaining stake Air Europa it did not own.
BASF SE declined 7.8% to €48.07 after the German chemical maker reported a loss in the fourth quarter and halted its stock repurchase program.
The chemical company also plans to eliminate 2,600 positions or about 2% of its staff.