European stocks closed lower as trade talks and corporate news weighed on markets. STOXX 50 fell 0.3%, while tech and luxury stocks declined. Vivendi surged 13.2% amid takeover buzz. Eurozone construction output rose 2.9% yearly, but current account
European equities ended Friday's trading session in negative territory, reversing modest early gains as market participants assessed corporate updates and developments in U.S.-EU trade discussions. The Eurozone's benchmark STOXX 50 declined 0.3%, settling at 5,359, while the broader STOXX 600 index dipped slightly below its opening level to close at 547.
Technology stocks remained volatile amid ongoing concerns over tariffs and macroeconomic instability, with semiconductor firm ASML sliding 2.6%. Luxury goods manufacturers and automotive companies also saw declines, as shares of Hermès, LVMH, Mercedes-Benz, and Stellantis fell between 1% and 3%.
In contrast, Vivendi shares surged 13.2% following a ruling by French financial regulators that Bolloré must launch a mandatory takeover bid for the company. Separately, Swedish defense contractor Saab jumped 16% after reporting second-quarter operating income that exceeded market expectations. For the week, both major European indices recorded marginal losses.
Eurozone construction activity expanded for the second consecutive month in May 2025, with output rising 2.9% year-over-year. This follows an upwardly revised 4.7% increase in April.
The growth rate moderated across all major construction segments, including building construction (6.4% vs. 7.4% in April), civil engineering (2.9% vs. 3.2%), and specialized construction activities (1% vs. 2%). On a monthly basis, construction output declined 1.7% after April's 4.9% surge.
The Eurozone's current account surplus contracted to €1 billion in May 2025, down significantly from €7.3 billion during the same period last year. This reduction stemmed primarily from a shrinking services surplus (€16.7 billion vs. €22.2 billion) and widening deficits in primary income (€34.8 billion) and secondary income (€11.9 billion).
However, the goods trade surplus improved to €30.9 billion from €29.1 billion. When adjusted for seasonal factors, the current account balance showed a more positive trend, rising to €32.3 billion in May from €18.6 billion in April.
