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European stocks slipped on Friday, and were on track to break a three-week winning streak, as investors sought clarity on the pace of monetary easing in the euro zone next year amid concerns over slowing economic growth and a potential trade war.

The pan-European STOXX 600 index edged down 0.2% by 0807 GMT and looked on track to end the week 0.4% lower.

Stock markets have been choppy this week as investors digested stimulus updates from China, inflation data from the US and euro zone as well as the European Central Bank’s fourth rate cut of the year on Thursday.

Focus now shifts to France, where President Emmanuel Macron is set to name a new prime minister, and the US Federal Reserve’s policy meeting next week, when a rate cut is expected.

The UK’s FTSE 100 got a lift as the pound fell after data showed Britain’s economy shrank for a second month in October, the first back-to-back falls in output since the onset of the COVID-19 pandemic.

European stocks pare losses after ECB trims interest rates

London-listed shares of Tullow Oil reversed opening gains and were last down 3.9% after US oil and gas company Kosmos Energy said it was in early talks for an all-share acquisition of the West Africa-focussed firm.

Munich Re climbed 4% after the German reinsurer said that it is targeting 6 billion euros ($6.27 billion) in net profit for next year, with its reinsurance business alone anticipated to make up 5.1 billion euros.

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