Europe’s benchmark stock index erased its monthly gain on Friday, as fears over a military strike in Syria kept investors on edge and U.S. data came in mostly below expectations.
The Stoxx Europe 600 index dropped 0.9% to close at 297.32, ending the month 0.8% lower. On the week, the benchmark closed down 2.4%, marking the biggest weekly loss since June.
Among country-specific indexes, the U.K.’s FTSE 100 index dropped 1.1% to 6,412.93, ending the month off 3.1%.
France’s CAC 40 index lost 1.3% to 3,933.78 to deepen its monthly loss to 1.5%.
Germany’s DAX 30 index gave up 1.1% to 8,103.15 and shaved off 2.1% for the month. Weak retail figures from the country weighed on index, after data showed sales fell for a second consecutive month in July.
Upbeat data from the euro zone weren’t enough to lift the indexes. The Economic Sentiment Indicator rose sharply by 2.7 in August to 95.2, beating expectations of a 93.7 reading.
Additionally, data showed the number of unemployed people in the euro zone fell in July for the second straight month, although the improvement wasn’t enough to bring down the unemployment rate from its all-time high of 12.1%.
Among major movers in the pan-European index, shares of Bwin.Party Digital Entertainment PLC sank 14% after the online gambling firm warned that full-year revenue could fall as much as 17%.
Vienna Insurance Group dropped 2.6% after Nomura cut the firm to neutral from buy.
As a sector, oil firms weighed the most, as the conflict in Syria remained in the spotlight amid accusations the government used chemical weapons against civilians last week.
Late Thursday, the U.K. parliament, however rejected a preliminary vote to become involved in military strikes in Syria, easing fears of an imminent attack. The move also added pressure on oil prices, which had climbed to a more than two-year high earlier in the week. Oil firms are sensitive to moves in oil prices.
Shares of BP PLC dropped 1% in London, Royal Dutch Shell PLC fell 1.3% and Total SA shaved off 1.4% in Paris.
Shares of Telecom Italia SpA jumped 9.4% after analysts at Bernstein said the company could be the next in the recent trend of mergers in the European telecom sector. Bernstein also lifted the company to outperform from market perform.
L’Oréal SA gained 3.2% after the cosmetics major confirmed its full-year guidance as its operating margin continue to climb to record levels.
Deutsche Bank AG added 0.7% after J.P. Morgan Cazenove lifted the bank to overweight from neutral.
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