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European Stocks Retreat After Early Gains, Settle On Weak Note

European stocks retreated after showing some strength earlier in the session on Friday, and ended the session on a weak note amid rising worries about sharp spikes in new coronavirus cases in the U.S.

European Central Bank President Christine Lagarde said the worst of the coronavirus crisis may be over for the world, but the recovery will be restrained and incomplete. On Thursday, the ECB launched a new facility that will provide euro liquidity to a broad set of central banks outside the euro area until June 2021.

Markets were also reacting to a report from the Federal Reserve that said U.S.' biggest banks are healthy but could suffer up to $700 billion in losses on soured loans if the economy languishes. The Fed ordered certain banks to cap dividends and suspend share buybacks to conserve funds.

The pan European Stoxx 600 declined 0.39%. Among the major indices, Germany's DAX shed 0.73%, France's CAC 40 slid 0.18% and Switzerland's SMI lost 0.47%, while the U.K.'s FTSE moved up 0.2%. CAC 40, DAX and the FTSE 100 shed 1.4%, 2% and 2.1%, respectively in the week.

Among other markets in Europe, Austria, Belgium, Denmark, Greece, Norway, Poland, Portugal and Spain closed with sharp to moderate losses today. Finland, Ireland, Netherlands and Sweden declined marginally and Russia ended flat. Czech Republic and Turkey closed higher.

In the French market, Unibail Rodamco shed nearly 5%. Airbus declined 3.2%. Credit Agricole, Carrefour, Peugeot, BNP Paribas, Societe Generale, ArcelorMittal and Renault ended lower by 1.3 to 2.3%.

On the other hand, Sodexo surged up 3.2%, while LOreal, Technip, Worldlne, Legrand, Cap Gemini, Valeo and Atos moved up 1 to 1.5%

In Germany, Wirecard tanked nearly 65%, extending its losses following the company filing for insolvency.

Lufthansa lost more than 6% and Thyssenkrupp ended 4.75% down, while Deutsche Bank, BMW, Daimler, Adidas and BASF lost 2 to 3%, while Vonovia gained 2.3%, and Beiersdorf and SAP advanced 1.2% and 1.1%, respectively.

In the U.K. market, TUI tumbled nearly 5%. Berkeley Group, Rolls-Royce Holdings, EasyJet, Evraz and Land Securities lost 2.3 to 3%.

On the other hand, Smiths surged up 4.1%, while Melrose, Whitbread, Burberry Group, Smurfit Kappa Group, Ds Smith, Ferguson, Ocado Group and Bunzhi gained 2 to 3%.

In economic news, Germany's import prices declined notably in May but the annual pace of fall slowed from April, data published by Destatis revealed. Import prices decreased 7% on a yearly basis in May, slower than the 7.4% drop seen in April. Month-on-month, import prices advanced 0.3%, the first rise seen so far this year. Prices had declined 1.8% in April.

French consumer confidence improved to a three-month high in June as coronavirus containment measures were relaxed, survey data from the statistical office Insee showed. The report said the consumer sentiment index advanced to 97 in June from 93 in May. Although the score was above economists' forecast of 95, the reading was below its long-term average of 100.

UK car production was the worst for May since 1946 as plants either remained closed or restarting at reduced capacity, the Society of Motor Manufacturers and Traders, or SMMT, revealed.

Car manufacturing output declined 95.4% from last year in May. Only 5,314 vehicles rolled off production lines. This was slight improvement from April, when 197 units were manufactured but it still marked the worst May since 1946.

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