America News Agency

The pan-European Stoxx 600 index had extended losses to 0.73 percent by 2:05 p.m. in London, with bank stocks tumbling 1.5 percent as utilities managed a 0.36 percent gain.

Carlsberg shares fell 8 percent after U.K. soft drinks maker Britvic confirmed it had rejected two unsolicited takeover proposals from the Danish drinks giant, saying the latest offer of 1,250 pence per share “significantly undervalues” the company. Britvic shares jumped 8 percent following the announcement.

Equity markets had primarily shaken off last week’s negativity after populist, far-right parties made substantial gains in elections to the European Union Parliament. Even France’s CAC 40 index is heading for a weekly gain after being hammered by the country’s shock election announcement. 

Central bank actions took the spotlight this week, with the Swiss National Bank making a significant move. It announced a 0.25 percentage point cut in interest rates to 1.25 percent, marking its position as the first major central bank to initiate a rate cut during this cycle. This development is crucial for investors to be aware of.

The Bank of England made a significant decision this week, opting to maintain interest rates at a 16-year high of 5.25 percent. This move was met with mixed reactions from economists, who detected a dovish undertone in the policymakers’ messaging. By Friday, money market bets on an August rate cut had fallen back to around 40 percent, a shift that could have a notable impact on the financial market.

Asia-Pacific markets closed lower Friday after Japan’s May core inflation data came in slightly cooler than expected. This unexpected data could pose potential risks and opportunities for investors. U.S. stock futures changed a little on Wall Street. Trading in the U.S. was expected to be more volatile than normal due to triple witching, the expiration of stock options, and stock index futures options.