European markets erase gains after auto stocks tumble

European stocks erased the previous session’s gains on Friday, weighed down by a decline in auto stocks and as investors awaited developments in EU-US trade talks ahead of US President Donald Trump’s tariff deadline next week.

The pan-European STOXX 600 index fell 0.6% to 548.16 points, having hit a six-week high on Thursday, but was still on track for modest weekly gains. Britain’s FTSE 100 index fell 0.4%, retreating from its all-time high reached on Thursday.

European auto stocks led the sectoral decline, falling 1.4%, pressured by French car parts company Valeo after it cut its full-year sales forecast. Its shares fell 12.4%.