European stocks slip

European stocks fell on Friday as worries about troubled property developer China Evergrande and weak German business confidence data prompted investors to book some profit after a mid-week rally.

European sportswear makers Adidas, Puma and JD Sports fell about 3 per cent each after U.S. rival Nike cut its fiscal 2022 sales expectations and predicted delays during the holiday shopping season due to a supply chain crunch.

Retail stocks were the top decliners in Europe, down 1.5 per cent, while the region-wide STOXX 600 fell 0.8 per cent. But a three day rally put the index on course for small weekly gains.

“Equities have rallied to take a pause early this morning faced with the likely default of Evergrande,” said Sebastien Galy, senior macro strategist at Nordea Asset Management.

Investor worries over Evergrande resurfaced as a deadline for paying $83.5 million in bond interest passed without remark from the company, putting it closer to a potential default.