European shares post the first weekly loss in four while banks weigh

European shares closed on Friday and reached their lowest in more than two weeks, weighed by British banks, while investors rated economic data in the US and the eurozone.

Natwest fell by 4.8%, while Barclays and Lloyds are shed 2.2%and 3.4%respectively, because a think tank that offers the Great Britain of the Great Britain should burden banks on the billions of pounds they receive in the bank of England they have at the Central Bank.

This weighed on the wider banking index, a decrease of 0.9%. The index registered its sixth session of Redingen, the longest losing series since October 2023.

The Pan-European Stoxx 600 closed 0.6% lower and registered its first weekly loss in four, with questions about the independence of the American Federal Reserve and political uncertainty in France that weigh on the index. However, it rose for the second consecutive month.

Fed Independence has come into the picture because President Donald Trump has performed his campaign to exert more influence on monetary policy, including his attempt to dismiss Governor Lisa Cook. Cook brought a lawsuit on Thursday and said that Trump has no power to remove her from his office.

In the meantime, data showed that the American price expenditure for personal consumption rose the price index in July on an annual basis by 2.6%, an estimated, which suggests a mild impact of the rates on inflation. However, it is not expected that the Federal Reserve prevents the interest rates from reducing next month against the background of mitigating labor market conditions. “It remains the basic case that they (fed) will lower the interest rates in September, but the higher inflation lecture does make a seed of that,” said Kiran Ganesh, Multi-ASCET strategist at UBS Global Wealth Management.

French misery

Important regional bourses also closed lower, with Germany’s Dax decreasing by 0.6%.

German inflation accelerated more than expected in August, while unemployment was 3 million for the first time in a decade. French consumer prices rose slightly less than expected in August.

European technological stocks lost the most and followed American colleagues. ASML fell 2.7% and SAP fell by 1.9%. Conversely, Defense shares were higher with the wider index by 0.4%.

The CAC 40 of France has dropped 3.3% this week, lagging regional colleagues, at concern about a possible collapse from the government of Prime Minister Francois Bayrou next month.

In September the ECB is expected to keep the rates, with reflection of the July meeting, after delivering eight rate reductions since mid -2024.

Renewable energy companies Orsted and Vestas Wind closed 3.3% and 3.1% respectively. The American administration said the $ 679 million in federal financing canceled for 12 offshore wind projects.

Remy Cointreau fell by 4.1%, even when the French spirit maker increased his entire year 2025/26 profit views.