European markets were trading lower Friday as investors reacted to disappointing data prints from two of the region's largest economies.

The pan-European Stoxx 600 was down 0.18% during early deals, following unexpected contractions in both U.K. GDP and key export data from Germany.

The U.K. economy contracted by an estimated 0.1% on a monthly basis, the ONS said Friday, with officials attributing the downturn to a decline in production output. Economists polled by news agency Reuters had projected a 0.1% rise in GDP in October.

On Thursday, the European Central Bank lowered its key interest rate by 25 basis points, marking its fourth and final rate cut of the year. Policymakers also signaled the possibility of more reductions in 2025.

The Swiss National Bank also cut rates on Thursday by a larger than anticipated 50 basis points, while Denmark's central bank announced a 25 basis point reduction.

Central bank watchers are now turning their attention to next week and rate decisions from the U.S. Federal Reserve and the Bank of England.

Asia-Pacific markets mostly fell overnight, led by losses in China after Beijing affirmed its recent policy shifts and stressed plans to boost growth after a high-profile meeting Thursday.

U.S. futures lost steam following a losing session on Wall Street.

Novo Nordisk down 2.6%

Shares of Danish pharmaceutical giant Novo Nordisk tumbled to the bottom of the Stoxx 600 on Friday, trading 2.6% lower by 11 a.m. London time.

News agency Reuters reported Friday that some British pharmacies had said Eli Lilly's Mounjaro were capturing as many as 80% of new customers in the U.K.'s private obesity drug market. Novo Nordisk manufactures rival drug Wegovy.

On Thursday, Novo Nordisk announced the EU's medicines regulator would allow the firm to add information to Wegovy's label relating to risk reduction for kidney disease-related events, following positive clinical trial outcomes.

European healthcare stocks were also trading lower Friday, after U.S. lawmakers floated new legislation this week aimed at overhauling industry business models.

— Chloe Taylor

Euro rallies against the British pound

The euro edged higher against the British pound on Friday, gaining 0.5% by 10:40 a.m. London time to trade at around 83 pence. It marked the euro's highest level against sterling this week.

The British currency slid against both the euro and the U.S. dollar Friday morning after a disappointing data print showed the U.K. economy contracted unexpectedly in October.

—     Chloe Taylor

UK consumer confidence still weak, survey finds

In the latest update to its long-running Consumer Confidence Index, GfK found that British consumers were continuing to take a cautious approach to spending in December.

The December reading showed a one-point increase to bring the monthly score to -17 — not far above the annual average of -18 points.

Elsewhere, however, there was some notable improvement in sentiment, with consumers becoming more optimistic when it came to their outlook for their personal financial situations over the next 12 months.

"Consumer confidence is still far from strong but there is some room for optimism with views on personal finances over the next 12 months creeping back into positive territory," Neil Bellamy, consumer insights director at NIQ GfK, said in a statement. "However, consumers are still thinking twice about big-ticket purchases and whether they will bring Christmas cheer."

— Chloe Taylor

Munich Re pops 5% on profit target

Shares of Munich Re were 5.3% higher at 9:10 a.m. in London, after the reinsurance giant announced a net profit target of 6 billion euros ($6.28 billion) for 2025 and a target for group insurance revenue to bring in 64 billion euros in an "ongoing favourable market environment."

The company is targeting 5 billion euros in profit in 2024, with full-year results set to be reported Feb. 26, 2025.

— Jenni Reid

European markets edge lower

European stocks opened lower on Friday, on the back of disappointing data prints from the U.K. and Germany.

The pan-European Stoxx 600 was down 0.18% by 8:10 a.m. London time, with healthcare and mining stocks among those firmly in negative territory.

Investors were reacting to unexpected contractions in both the U.K.'s October GDP print, and key export data from Germany.

London's FTSE 100 index rose 0.1% shortly after the opening bell and Germany's DAX also edged slightly higher.

Sterling was lower against the dollar, while the euro was little changed against the greenback.

— Chloe Taylor

UK economy shrinks for a second month

The U.K. economy contracted unexpectedly in October, according to data from Britain's Office for National Statistics (ONS).

Gross Domestic Product fell by an estimated 0.1% on a monthly basis, the ONS said Friday, with officials attributing the downturn to a decline in production output. Economists polled by news agency Reuters had projected a 0.1% rise in GDP in October.

Read the full story here.

- Chloe Taylor

CNBC Pro: Want to cash in on the emerging market boom? Here are 2 of HSBC's 'best stock ideas' with over 50% upside potential

A pick-up in consumer demand, improving economic growth and attractive stock market valuations have contributed to the popularity of emerging markets (EM) this year.

HSBC is sticking to its "cautiously constructive" stance on them in 2025, as U.S. President-elect Donald Trump prepares to return to office in January.

"There is no sugar coating that tariffs and a strong USD are downside risks," the investment bank's analysts said, as they revealed their best stock ideas.

Among their picks were two lesser-known names, both with over 50% upside potential.

CNBC Pro subscribers can read more here.

— Amala Balakrishner

European markets: Here are the opening calls

European markets are poised to open lower Friday as investors digest the European Central Bank's latest rate cut decision, in what was a busy day for monetary policy during the previous session.

The FTSE 100 was seen opening 22 points lower at 8,287, Germany's DAX was down 35 points at 20,391, France's CAC was 21 points lower at 7,400 and Italy's FTSE MIB down 38 points at 34,799, according to IG data.

— Karen Gilchrist