European stocks slide but brace for weekly gains; Mercedes falls by Reuters

(Reuters) – European shares fell on Friday after a rally in the previous session, boosted by a huge interest rate cut by the U.S. Federal Reserve, while Mercedes shares were set for their worst day in 15 months after the company cut its core profit outlook.

The pan-European index was down 0.4 percent at 519.52 points as of 0710 GMT, but was on track for a second straight week of gains.

All major European markets were trading lower except for Spain, which was up 0.1%.

Auto stocks led sector losses with a more than 3% decline, weighed down by a 7.6% drop in Mercedes-Benz ( OTC: ) after the automaker narrowed its full-year profit margin for the second straight year times in less than two months, by total sales volume. fell in China.

slipped 0.7%. German producer prices fell less than expected in August, falling 0.8 percent versus expectations for a 1.0 percent drop.

100 fell 0.6 percent after a survey showed consumer confidence fell sharply to a six-month low in September.

Investors are now turning their attention to euro zone consumer confidence data for September due at 14:00 GMT for more clues about the health of the region’s economy.

Among others, Novo Nordisk (NYSE: ) advanced 0.5% after the European Medicines Agency endorsed the use of the Danish drugmaker’s popular drug Wegovy to help treat heart failure in people with obesity.