European Shares Retreat as Gold Prices Dip, Overshadowing Defence Gains

European shares paused on Friday as declining gold prices hit mining stocks, overshadowing gains in defence stocks. The STOXX 600 fell slightly after reaching record highs. While HSBC reviewed its Singapore insurance operations, German steel firm Kloeckner & Co gained on a $2.4 billion acquisition deal. ASML saw slight gains.

European shares experienced a brief setback on Friday, influenced by a decline in gold prices that led to a downturn in mining stocks, counteracting the strength observed in defence industry shares.

The STOXX 600 index slipped by 0.06% following a record high the previous day, with market dynamics largely influenced by ongoing geopolitical factors in the absence of significant new economic data.

Miners fell by 1%, pushing the STOXX 600 down, while defence stocks gained 0.7% following losses. HSBC shares dropped 0.6% amid a strategic review of its Singapore insurance business, while Kloeckner & Co's shares surged by 29% following a takeover bid by Worthington Steel. ASML gained 0.5% after being valued over $500 billion.

(With inputs from agencies.)