EUROPE MARKETS: European Stocks Erase Draghi-inspired Gains After Weak U.S. Data

By Sara Sjolin and Carla Mozee, MarketWatch

European stock markets ended a choppy session in the red on Friday after disappointing U.S. data sent the euro firmly higher and weighed on exporters.

The Stoxx Europe 600 shaved off 0.4% to close at 396.45, ending the week with a 0.9% weekly loss.

The index had opened in positive territory, building on a 0.6% gain from Thursday when European Central Bank President Mario Draghi underlined that ECB's measures to stimulate the eurozone economy (http://www.marketwatch.com/story/draghi-ecb-to-keep-stimulus-as-long-as-needed-2015-05-15) "will stay in place as long as needed for its objective to be fully achieved on a truly sustained basis."

However, in afternoon action, the pan-European benchmark--along with most country-specific indexes--was sent firmly lower after data showed U.S. consumer sentiment unexpectedly slid to a seven-month low (http://www.marketwatch.com/story/consumer-sentiment-tumbles-to-seven-month-low-2015-05-15) in May.

The weak reading was seen as further cementing that a Federal Reserve rate hike is off the table in June, sending the dollar (http://www.marketwatch.com/storyno-meta-for-guid)(DXY) lower and keeping it on track to finish lower against the euro for a fifth-straight week. The euro (EURUSD) jumped to $1.1440 from $1.1410 late Thursday in New York.

Other markets: The lackluster U.S. data and stronger euro hit particularly Germany's DAX 30 index , which is skewed heavily toward export-driven companies. The German benchmark lost 1% to 11,447.03, with shares of Volkswagen AG , down 2.3%, K+S AG , off 2.8% and BMW AG , 2.5% lower, among biggest decliners.

France's CAC 40 fell 0.7% to 4,993.82, while the U.K.'s FTSE 100 slipped 0.2% to 6,960.49. In London, SABMiller PLC (SBMRY) shares gained 0.7% after the maker of Peroni and Miller Genuine Draft said it's moving into the U.K. craft beer market by purchasing Meantime Brewing Company (http://www.marketwatch.com/story/sabmiller-buys-uks-meantime-brewing-2015-05-15). The terms of the deal for Greenwich, London-based Meantime weren't disclosed.

Other stock movers: Energy shares lost ground alongside oil prices (http://www.marketwatch.com/story/oil-prices-slips-on-dollar-strength-2015-05-15)(CLM5) . Among shares, oil-services firm Seadrill Ltd. (SDRL) fell 10%, producer Tullow Oil PLC fell 2.3% and oil giant Royal Dutch Shell PLC (RDSB) fell 1.4%. Crude futures were on track for their ninth consecutive weekly rise.

Roche Holding rose 1.8% after the Swiss drug maker showed positive results from trials related to treating lung cancer.

Bonds: European bond markets appeared calmer on Friday in the wake of Draghi's comments. German bond prices were higher, edging the yield on the 10-year bund down 8 basis points to 0.63%, although it remains higher than recent record low of 0.05%. French 10-year debt on Friday was yielding 0.91%, down 8 basis points.

"Recent volatility in bond markets and the recent bounce in member-state bond yields have kept risk assets on the back foot over the past week," said Brenda Kelly, head analyst at London Capital Group, in a Friday note. Read: 4 reasons why the bond market is going wild. (http://www.marketwatch.com/story/4-reasons-why-the-bond-market-is-going-wild-2015-05-12)

(http://www.marketwatch.com/story/4-reasons-why-the-bond-market-is-going-wild-2015-05-12)Equities were whipped around this week as a selloff in European bonds ramped up, pushing yields on debt to levels that were last seen before the ECB launched its bond-buying spree.

Subscribe to WSJ: http://online.wsj.com?mod=djnwires