All European shares in red except Spain’s IBEX

European shares retreated on Friday after gains in the previous session, boosted by the Federal Reserve’s decision to cut interest rates, while Mercedes shares were set for their worst day in 15 months after the company cut its core earnings forecast.

The pan-European STOXX 600 index was down 0.4% at 519.52 points by 0710 GMT, but was on track for a second straight weekly gain.

All major European markets were in the red, except Spain’s IBEX, which rose 0.1%.

Auto stocks led sectoral losses, falling more than 3%, led by a 7.6% drop in Mercedes-Benz as the carmaker cut its full-year profit margin for the second time in less than two months, after total sales volumes in China fell.

Germany’s DAX fell 0.7%, while German producer prices fell less than expected in August, falling 0.8% year-on-year versus expectations of a 1% decline.

Britain’s FTSE 100 fell 0.6% after a survey showed consumer confidence fell sharply to a six-month low in September.

Markets are focusing on euro zone consumer confidence data for September, due at 1400 GMT, for further evidence of the region’s economic health.

On the corporate front, Novo Nordisk rose 0.5% after the European Medicines Agency approved the Danish drugmaker’s popular Wegovy drug to help ease heart failure in obese people.