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European Markets Drop Following Hawkish Fed Statement

The majority of the European markets ended Friday's session in negative territory, after investors had their first opportunity to react to yesterday's Federal Reserve statement. The Fed left interest rates unchanged as widely expected, but indicated it remains on track to gradually raise rates despite signs of a slowdown in the pace of growth in business investment.

China grown concerns also contributed to the negative mood among investors, after data showed China's producer price inflation slowed for the fourth month in a row in October.

The pan-European Stoxx Europe 600 index weakened by 0.37 percent. The Euro Stoxx 50 index of eurozone blue chip stocks decreased 0.25 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, lost 0.24 percent.

The DAX of Germany climbed 0.02 percent, but the CAC of France fell 0.48 percent. The FTSE 100 of the U.K. declined 0.49 percent and the SMI of Switzerland finished lower by 0.23 percent.

In Frankfurt, ThyssenKrupp plunged 9.08 percent as it lowered its profit outlook for the second time this year, citing legal provisions for a probe into steel-price fixing.

In Paris, Air France KLM rose 1.72 percent after unveiling its October traffic figures.

In London, Informa rallied 2.66 percent. In a trading update for the 10-months ending 31 October 2018, the event manager and publisher said that its performance is in line with expectations, leaving it on track to meet its ambition for underlying revenue growth of 3.5 percent plus.

UBS tumbled 2.65 percent in Zurich. The bank said it would contest residential mortgage-backed securities civil complaint filed by United States Department of Justice.

Richemont sank 6.37 percent. The luxury good group reported a fall in first-half underlying net profit amidst growing volatility in consumer demand.

China's consumer prices increased at a steady pace in October, while producer price inflation slowed for the fourth consecutive month on weaker manufacturing activity, official data showed Friday. Inflation remained unchanged at 2.5 percent in October, the highest since February, the National Bureau of Statistics reported. The rate also came in line with economists' expectations.

France's industrial production decreased more-than-expected in September, data from the statistical office Insee revealed Friday.

Industrial production logged a monthly drop of 1.8 percent, in contrast to a 0.2 percent rise in August. This was the first fall in five months and the biggest since January. Economists had forecast a marginal 0.3 percent decrease for September.

The UK economy expanded at the fastest pace in nearly two years in the third quarter driven by household spending and exports, despite heightened uncertainty over the Brexit deal.

Gross domestic product advanced 0.6 percent sequentially after expanding 0.4 percent a quarter ago, figures from the Office for National Statistics showed Friday. The growth rate was the fastest since late 2016 and matched economists' expectations.

UK industrial production remained flat, while manufacturing output recovered in September, data from the Office for National Statistics revealed Friday.

Industrial production remained unchanged for the second straight month in September. Economists had forecast a 0.1 percent drop in output.

The UK's visible trade deficit decreased to a seven-month low in September, figures from the Office for National Statistics revealed Friday. The trade in goods showed a shortfall of GBP 9.73 billion compared to a deficit of GBP 11.72 billion in August. This was the smallest deficit since February.

Partly reflecting a jump in prices for trade services, the Labor Department released a report on Friday showing a much bigger than expected increase in U.S. producer prices in the month of October. The Labor Department said its producer price index for final demand climbed by 0.6 percent in October after rising by 0.2 percent in September. Economists had been expecting another 0.2 percent uptick.

With an increase in inventories of durable goods more than offsetting a drop in inventories of non-durable goods, the Commerce Department released a report on Friday showing U.S. wholesale inventories rose by slightly more than anticipated in the month of September.

The Commerce Department said wholesale inventories climbed by 0.4 percent in September after jumping by 0.9 percent in August. Economists had expected inventories to rise by 0.3 percent.

A preliminary report released by the University of Michigan on Friday showed consumer sentiment in the U.S. deteriorated slightly in the month of November. The report said the consumer sentiment index edged down to 98.3 in November from the final October reading of 98.6. Economists had expected the index to dip to 98.0.

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