European Stocks Fall On Strong Dollar, Weak Commodities

European stocks ended Friday trading in the red, as global bond market volatility and a surging U.S. dollar held back equity gains in the post-election rally.

Commodity stocks were the first to fall victim to the rising dollar, which pushed materials and energy prices lower, while media and advertising stocks fell on concerns over fourth-quarter marketing spending among European companies.

Britain's FTSE 100 slipped into negative territory as the Friday bell approached, giving back around 25 points but still on track to book a weekly advance of 0.5%. It has gained 8.5% for the year-to-date.

The index has a heavy weighting toward commodities and energy, while a slug of the financials were also weak, all of which were laggards during the session.

The domestic facing FTSE 250 bucked the trend however, rising by around 0.25%, boosted by gains across a range of sectors, and pushing it to a 1.3% return for the year-to-date.

Germany's DAX was down around 0.2% on Friday after being weighed down by utilities and autos, pushing the index nearly 1% into the red for the year-to-date.

France's CAC 40 lost around 0.5% for the session, as advertisers and energy related stocks fell, pushing the index closer toward a 3% loss for the year to date.

The region's blue chip index, the Euro Stoxx 50, fell 0.62% on the session, wiping out a modest weekly advance and taking the five-day decline to around 0.36%. The benchmark has recorded a loss of 7.5% for the 2016 year-to-date.

Key European currencies saw yet more weakness against the dollar, with the pound trading down by more than 100 points at 1.2305 by the time stocks closed, and the euro down by 50 points to 1.0580.

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