European shares muted, set for sixth straight week of gains

European stocks were subdued on Friday, with retail shares coming under pressure on fears of a bumpy holiday shopping season due to high inflation and slowing global economic growth.

The pan-European STOXX 600 was flat in light morning trade, holding near three-month highs hit earlier this week. US markets remained closed on Thursday and will have shortened trading hours on Friday on account of Thanksgiving.

Europe’s retail index fell 0.3% on Black Friday, which kicks off the shopping season, against the backdrop of a worsening cost-of-living crisis and the distraction of the soccer World Cup. The index is among the worst-performing sectors in Europe, with a 32% drop so far this year, reported Reuters.

Real estate stocks tumbled 1.3%, with UK housing stocks leading the declines as a survey showed demand for rental homes in Britain rose in October as prospective first-time buyers put off purchases.

Still, the benchmark STOXX 600 was set for its sixth straight week of gains, helped by signs that the U.S. Federal Reserve could temper its pace of interest-rate hikes as well as better-than-expected earnings season.

The index has rallied more than 15% since hitting a trough in late September, slightly outperforming a 13% climb in S&P 500 (.SPX) from its October lows.