European markets closed lower on Friday as investors monitored political turmoil in the U.S. and monetary policy decisions from various major economies.
The pan-European Stoxx 600 index ended down 0.78%, with all major bourses and almost all sectors in negative territory. The index was down 1.9% on the week.
The United States was plunged into fresh political uncertainty on Thursday evening, after the failure of a Trump-backed spending bill, the passage of which would have prevented a government shutdown. Dozens of Republican lawmakers voted against the deal to fund the government for three months and suspend the U.S. debt ceiling for two years, meaning a partial government shutdown will commence on Friday night.
Meanwhile, U.S. President-elect Donald Trump issued a fresh trade threat to the EU, floating on social media the possibility that he would impose new tariffs on the bloc unless it purchased more oil and gas from the United States.
U.S. stocks opened lower Friday but bounced in morning trade following a better-than-expected inflation print.
Elsewhere, China held its key interest rates steady Friday, in line with expectations. The decision came after Beijing’s top officials vowed to ramp up policy-easing measures earlier this month.
There were also monetary policy updates from the Federal Reserve and the Bank of England this week. On Wednesday, the Fed announced a 25-basis-points cut to its core interest rate, while the Bank of England held policy unchanged at its own…
