European shares slipped on Friday, weighed by declines in
banking stocks, as the previous session's hefty rally petered
out.
Bank shares were a notable weak spot, weighed down by a more
than 10% fall in shares of Spanish lender Banco Santander after it
launched a EUR7.5 billion capital hike. That also hit the broader
Madrid stock market, which was 2.0% lower.
Stocks around the world surged on Thursday as investors bet that
central banks will continue to flood financial markets with cheap
money. Signs that the U.S. Federal Reserve is in no hurry to raise
interest rates and a growing consensus that the European Central
Bank will soon launch a bond-buying stimulus program had bolstered
markets.
Markets were also buoyed by signs that oil prices are
stabilizing after some steep declines at the start of 2015. Brent
crude was steady at $50.98 a barrel early Friday.
Still, the gains fizzled out in Europe Friday with investors
awaiting jobs data from the U.S. later in the session.
The Stoxx Europe 600 was 0.1% lower in early trade, having
climbed 2.8% on Thursday.
Germany's DAX, France's CAC 40 and the U.K.'s FTSE 100 all fell
by 0.1%.
Later, data are expected to show the U.S. economy created
240,000 jobs in December.
Confidence about the labor market, which has fueled a dollar
rally in recent months, "comes in for some scrutiny" with the
monthly payroll report, said Bank of Tokyo-Mitsubishi analyst Derek
Halpenny.
The euro was a touch higher against the buck on Friday at
$1.1806, but still close to its recent nine-year low.
Write to Tommy Stubbington at tommy.stubbington@wsj.com
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