European stocks soured on Friday, continuing to recede from highs despite positive broker backing from firms including Credit Suisse and Morgan Stanley.
The Stoxx Europe 600 SXXP, -0.98% dropped 1% in afternoon trade, and the index is now down over 3% from record highs set in November.
The European backdrop has been difficult with new coronavirus-related restrictions, notably in eurozone stalwart Germany. The Ifo business climate index, released Friday, showed sentiment in Germany falling for the sixth consecutive month, to a worse-than-forecast reading of 94.7.
“Our hopes that easing supply constraints in manufacturing and receding corona cases would be enough to stabilise confidence were dashed,” said economists at Citi.
The German DAX DAX, -1.06% fell 1.2%. The French CAC 40 PX1, -1.29% also lost ground while the FTSE 100 UKX, -0.01% was steady.
DiaSorin DIA, -11.82% shares fell 12% as the Italian diagnostics firm forecast a 60% drop in COVID-19 revenue next year.
