European markets opened lower on Friday as investors focused on political turmoil in the United States and monetary policy decisions in major economies.
The United States was plunged into new political uncertainty late Thursday after the failure of a Trump-backed spending bill that would have prevented a government shutdown. Dozens of Republican lawmakers voted against the deal to fund the government for three months and suspend the U.S. debt ceiling for two years, meaning a partial government shutdown will begin Friday night.
Elsewhere, China kept its key interest rates stable on Friday, in line with expectations. The move came in the same month that senior officials in Beijing vowed to step up policy easing measures.
The latest developments from the People’s Bank of China come in the same week as monetary policy updates from the Federal Reserve and Bank of England. On Wednesday, the Federal Reserve announced it would cut its core interest rate by 25 basis points, while the Bank of England kept its policy unchanged at its meeting on Thursday.
While the Bank of England’s decision was widely expected, the vote and governor Andrew Bailey were divided Comment The impact of the newly elected Labor government’s budget on the economy has unnerved markets, triggering a fall in the pound and higher UK 10-year gilt yields.
Russian policymakers will update their monetary policy on Friday.
UK retail sales in November, France’s November producer price index, and the current status of Italian consumer confidence will also be announced on Friday.
—CNBC’s Christina Wilkie, Sonia Heng and Anniek Bao contributed to the European market summary.
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