Market Analysis

European shares edged lower on Friday, following a decline of more than 1% in the previous session, with the main index set for weekly losses amidst ongoing political uncertainty in France.

The pan-European STOXX 600 .STOXX was down 0.1% as of 0725 GMT, marking a 1.5% decrease for the week so far.

Technology stocks .SX8P showed resilience, rising 0.6%, while most other sectors remained subdued. Automobile-related shares .SXAP were among the biggest losers, dropping nearly 1% to their lowest levels in over four months.

The French benchmark CAC 40 index .FCHI fell nearly 1%, underperforming other European indices, as investor concerns persisted over the political environment, contributing to a four-year high in the risk premium on French bonds.

France's leftwing parties are set to unveil their joint political manifesto on Friday, aiming to challenge the leading position of the far-right National Rally in the upcoming snap parliamentary elections.

In economic news, French consumer prices showed a 2.6% increase in May, slightly lower than the initial reading of 2.7% reported at the end of May.

Among individual stocks, Crest Nicholson CRST.L surged 9.7% after British homebuilder Bellway BWY.L revised its unsolicited all-share takeover offer of £650 million ($828 million), which Crest Nicholson deemed as significantly undervaluing the company.

Paraphrasing text from "Reuters" all rights reserved by the original author.