This is CNBC's live blog covering European markets.
LONDON — European markets retreated on Friday, tracking cautious global sentiment as traders assess the future for monetary policy and fresh concerns about China's real estate sector.
The pan-European Stoxx 600 index closed 0.6% lower, paring some of its earlier losses. Mining stocks dipped 1.5% and retail stocks fell 1.2% as almost all sectors and major bourses slid into negative territory.
The European blue chip index closed Thursday's session down 0.9% after the U.S. Federal Reserve's July meeting minutes showed further interest rate hikes were not off the table.
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European stocks on Friday look set to follow counterparts in Asia-Pacific, where markets fell across the board as investors assessed Japan's July inflation print and embattled Chinese real estate giant Evergrande's U.S. bankruptcy filing.
The company sought protection under Chapter 15 of the U.S. bankruptcy code, which shields non-U.S. companies that are undergoing restructuring from creditors.
Stateside, U.S. stocks traded lower after the major averages dropped for a third straight day on Thursday, with the Dow closing below the 50-day moving average — typically a bearish signal for investors — for the first time since June 1.
Money Report
Wednesday's Fed meeting minutes prompted the U.S. 10-year Treasury yield on Thursday to rise to its highest level since October 2022.
Biggest movers: GN Store Nord, Alk-Abello down 5%
Danish hearing aid manufacturer GN Store Nord fell 5.9% by mid-afternoon in Europe to the bottom of the Stoxx 600 after JPMorgan cut its price target for the stock. The company saw significant losses on Thursday after a weak second-quarter earnings report.
Danish pharmaceutical company ALK-Abelló also fell more than 5%.
- Elliot Smith
Hong Kong's benchmark Hang Seng index closes in bear market territory
Hong Kong's benchmark stock index closed in bear market territory, down 2.1% in the Friday session and more than 20% below the highs of January, as uncertainty over China's property market and growth prospects erase early-year gains.
The further losses on Friday came after news that embattled Chinese real estate giant Evergrande had filed for bankruptcy protection in a U.S. court.
Friday's plunge for the Hang Seng index saw some of the region's largest companies close in the red, with Tencent down 2.34%, Alibaba down 3.44% and HSBC shedding 1.1%.
- Elliot Smith
Stocks on the move: Adyen slides another 5% after Thursday's plunge
Adyen shares fell more than 5% in early trade, compounding Thursday's massive losses after the Dutch payments company missed first-half earnings expectations.
At the top of the Stoxx 600, Swedish video game and media holding company Embracer Group rose more than 4%.
- Elliot Smith
Negative open in Europe
The pan-European Stoxx 600 index was down 0.4% in early trade, with retail stocks falling 0.9% to lead losses as most sectors and major bourses slid into the red.
Telecoms bucked the trend to nudge 0.3% higher.
UK retail sales fell 1.2% in rain-soaked July
U.K. retail sales fell 1.2% month-on-month in July and 3.2% annually, primarily due to persistent poor weather, the Office for National Statistics said Friday.
The figure was well below a consensus forecast for a 0.5% decline among economists polled by Reuters, and down from a 0.6% monthly expansion in June.
"Rather than spending at home, consumers were instead tempted to spend their increasingly squeezed disposable income on booking last-minute holidays, leaving less money for retail spending," noted Carly Donovan, associate partner at McKinsey & Company.
"And with air travel costs up 29.8% year on year, holiday bookings ate into a larger portion of disposable income than usual."
- Elliot Smith
Here are the opening calls
Britain's FTSE 100 is set to open around 37 points lower at 7,273, Germany's DAX is seen around 42 points lower at 15,635 and France's CAC 40 is expected to shed around 19 points to 7,173, according to IG data.
China's embattled property giant Evergrande files for bankruptcy in U.S. court
China's property giant Evergrande group filed for Chapter 15 bankruptcy protection in a U.S. court late Thursday.
The real estate developer referenced restructuring proceedings in Hong Kong, the Cayman Islands and the British Virgin Islands, in a filing to the Manhattan court.
In July, Evergrande posted a combined loss of $81 billion over the past two years, after struggling to complete projects and pay back its suppliers and lenders.
The news comes amid contagion fears that problems in China's struggling real estate sector could spill over to other parts of the economy, even as growth stalls.
Read the full story here.
— Sumathi Bala
Japan's core inflation rate fell in July, headline inflation holds steady at 3.3%
Japan's core inflation for July fell to 3.1% from June's figure of 3.3%, in line with expectations from economists polled by Reuters.
Japan's core inflation strips out prices of fresh food.
The headline inflation rate for July came in at 3.3%, unchanged from June's figure.
The so called "core-core" inflation metric, which strips out prices of fresh food and energy and used by the Bank of Japan in its monetary policy considerations, came in at 4.2%, down from 4.3% in June.
— Lim Hui Jie
CNBC Pro: These stocks pulled back in August but analysts expect them to bounce back — giving one 103% upside
August has been a rocky month for stocks so far.
For those looking for stocks that pulled back this month but still have upside potential, CNBC Pro screened the S&P 500 and the Vanguard FTSE All-World ex-U.S. index.
The resulting stocks have fallen into negative territory in August, but have average price target upside of at least 30%, and buy ratings from at least half of analysts covering them.
CNBC Pro subscribers can read more here.
— Weizhen Tan
CNBC Pro: S&P 500, Treasuries or Berkshire Hathaway? Here's how value investor Guy Spier would invest
Investors are almost spoilt for choice between the safety of bonds and the potential upside from stocks.
On the one hand, the U.S. economy is showing signs of healthy growth, and some analysts expect stocks to continue soaring. At the same time, U.S. government bonds are offering more than 5% in risk-free yield.
Renowned value investor Guy Spier weighed in on CNBC's Pro Talks on whether it's better to invest in an S&P 500 index fund, U.S. Treasuries, or Berkshire Hathaway's stock for the long run.
CNBC Pro subscribers can read his response here.
— Ganesh Rao
