European Stocks Post Worst March Since 2020 on Growth Jitters

European stocks gained on Friday, trimming their worst March since the pandemic-fueled crash in 2020 as concerns about the financial sector and staunchly hawkish central banks took the shine off a strong rally at the start of the year.

The Stoxx 600 closed 0.7% higher today. While it pared its March decline to below 1%, it was still the index’s first monthly drop this year. The strong start to 2023 helped it post its second straight quarterly gain and this was the best week for the benchmark since early January. Retail and consumer products outperformed today, while energy and banks underperformed. European stocks extended gains on Friday after a key measure of US inflation cooled last month by more than expected.