Samuel Indyk

The pound tumbled on Friday after data showed British business output in November shrank for the first time in more than a year, and retail sales also fell by much more than expected in October.

Shares in global vaccine makers and drugmakers fell on Friday after U.S. President-elect Donald Trump picked Robert F. Kennedy Jr., who has previously spread misinformation on vaccines, to lead the Department of Health and Human Services (HHS).

The collapse of Germany's government could have a silver lining for the euro zone's ailing economy with potentially higher spending likely to support its currency and stock markets, even if the path remains uncertain.

Europe's third-quarter earnings have mostly topped markets' low expectations and investors are rewarding beats more handsomely than they have in years, even though weak China demand is a cause for caution.

Shares in British consumer goods company Reckitt Benckiser jumped over 10% on Friday after the company, along with U.S.-based Abbott Labs, was cleared of liability in a preterm formula case.

Britain's gilt yields rose across the curve, while the premium investors demand to hold UK debt, rather than German, hit its highest since August 2023 as investors digested Britain's new budget that is set to raise borrowing, spending and taxes.

Analysts have downgraded estimates for European corporate earnings at the fastest pace in seven months this week, setting a lower bar for beats, while more optimism over the global outlook might spare shares from severe punishment for misses.

The British pound was steady on Thursday after hitting a three-week low against the dollar the day before after data showed the UK economy stagnated in July, while focus turned to next week's key inflation print and central bank meeting.

Shares in some big European luxury goods companies fell sharply on Thursday, with traders citing growing concerns over slowing demand in the key Chinese market following the latest signs of a weakening in the world's No. 2 economy.

Europe's STOXX 600 hit a record intraday high on Friday, rebounding from a sell-off earlier in August on expectations major global central banks will loosen monetary policy while economic growth and the labour market remain relatively robust.