European Stocks Fall as Weak PMI Data, Earnings Weigh; Oil Surge Adds Inflation Concern

European equities closed lower Friday, pressured by weak regional PMI data, inflation and monetary tightening concerns tied to rising oil prices, and a heavy corporate earnings slate. The pan-European Stoxx 600 fell 0.31%, with Germany's DAX down 0.75%, France's CAC 40 off 0.36%, the UK's FTSE 100 down 0.32% and Switzerland's SMI 0.59% lower. Brent front-month crude climbed past $115 a barrel before paring gains amid Middle East tensions after Houthi strikes in Saudi Arabia. In France, Kering plunged nearly 17% to a 52-week low on flat third-quarter revenue, while Safran fell 10% despite beating forecasts on aftermarket growth concerns. L'Oreal rose 5.7% and Sodexo jumped 7% on strong results. In the UK, Rolls-Royce dropped 7.6% on reports of a near £200 million government subsidy deal. France's flash composite PMI fell to a four-month low of 48.4 from 51.1, signaling contraction. UK retail sales fell 0.4% in September, worse than the 0.1% expected decline.