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The pan-European STOXX 600 index closed 1.4% lower, though it recorded a second straight week of gains.
All major European stock markets had steep losses, except Spain, which closed 0.2% lower.
Novo Nordisk shed 5.4% after results from a Phase 2a trial of the Danish drugmaker’s experimental obesity pill monlunabant came in below market expectations.
The broader health care sub sector eased 1.9%.
Autos led declines among the major STOXX sectors, down 3.6%, hurt by a 6.8% slide in Mercedes-Benz which cut its full-year profit margin target for the second time in less than two months. Other industry rivals such as Volkswagen and France’s Forvia dropped 3.4% and 8%, respectively. Tech eased 2.7% as shares of Dutch computer chip equipment maker ASML lost 4.2% after Morgan Stanley downgraded its rating on the stock to “equal-weight”.
Global equities had rallied sharply on Thursday after the Fed on Wednesday kicked off an anticipated series of interest rate cuts with a larger-than-usual half-percentage-point reduction.
“The market is expecting further reductions of a similar amount before the end of the year, and in the absence of an economic downturn, the scene is set for a positive end to the year,” said Richard Hunter, head of markets at interactive investor.
On the data front, British retail sales rose by a stronger-than-expected 1% in August and growth in July was revised up, while euro zone consumer confidence rose by 0.5 points in September from the August number.
German producer prices fell less than expected in August, decreasing by 0.8% on the year versus expectations of a 1% decline.
Among other headline stocks, Germany’s DHL dipped 4.4% following U.S. rival FedEx’s dismal first-quarter results.
Burberry fell 3.5% as Jefferies cut its rating on the British fashion company to “underperform” from “hold” and lowered the target price to 490p from 800p.
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