European Shares Retreat On Inflation Concerns

(RTTNews) - European shares traded lower on Friday and were set for weekly losses as a continued rise in crude prices amid an escalating conflict in the Middle East fueled inflation worries and reduced expectations of near-term Federal Reserve rate cuts.

In economic releases, the U.K. economy logged no growth in January, as growth in construction was offset by contraction in industry and flat services activity, the Office for National Statistics reported.

Gross domestic product remained flat after rising 0.1 percent in December and 0.2 percent in November. Economists had forecast a monthly growth of 0.2 percent.

On a yearly basis, the economy expanded 0.8 percent in January, slightly weaker than forecast of 0.9 percent.

Elsewhere, France's annual inflation rate picked up to 0.9 percent in February from 0.3 percent in January.

The pan European Stoxx 600 was down 1.1 percent at 592.59 after falling 0.6 percent on Thursday.

The German DAX fell 1.1 percent, France's CAC 40 shed 1.3 percent and the U.K.'s FTSE 100 dropped 0.8 percent.

Banks led losses, with Commerzbank, Deutsche Bank and BNP Paribas all falling around 2 percent.

Vivendi tumbled 3.7 percent despite the French media giant reporting a significant swing to profitability in the second half of 2025.

British homebuilder Berkeley 2.7 percent after reaffirming its annual profit guidance.

Radiator manufacturer Stelrad Group was down 3.5 percent after 2025 revenue fell amid subdued demand in the U.K., Ireland and Europe.

Energy giant BP Plc advanced 1.5 percent and peer Shell added 0.8 percent as oil prices climbed back above $100 a barrel, following attacks on oil tankers in the Strait of Hormuz.

BE Semiconductor shares jumped nearly 10 percent on reports that the chip equipment maker has received takeover interest.