European stock markets slid for a second session running Friday and the dollar dropped as investors grow concerned about the economic outlook for next year.All eyes will be on US inflation data later in the session to see if it alters interest-rate cut expectations for the world’s biggest economy.The Federal Reserve this week trimmed US borrowing costs but signalled fewer cuts than had been expected for 2025.Oil prices have also fallen since the Fed announcement.”Markets remain cautious ahead of US inflation figures,” noted Derren Nathan, head of equity research at stockbrokers Hargreaves Lansdown.Paris and Frankfurt were down about 1.2 percent in late morning trade, while London lost 1.1 percent. All three indices shed similar amounts by the close Thursday.Leading Asian equity markets ended the week with slight losses after Wall Street steadied.Traders are awaiting the release Friday of data on US personal consumption expenditure — the Fed’s preferred gauge of inflation and the last major piece of data for the year.Wall Street provided a meek lead Thursday, having squandered an early bounce from Wednesday’s plunge that had been sparked by the Fed’s changed outlook over rates.Data showing a forecast-topping rise in US economic growth and consumer spending did little to ease concerns that the Fed would keep borrowing costs higher for longer.Official figures Friday revealed tepid retail sales in the UK in the runup to Christmas, hurting local government efforts to grow the British economy.Investors are keeping a watch also on developments in Washington.The House of Representatives has rejected a Republican-led funding bill to avert a government shutdown, with federal agencies due to run out of cash Friday night and cease operations from this weekend.The legislation would have kept the government open through March and suspended the borrowing limit for president-elect Donald Trump’s first two years in office.- Key figures around 1045 GMT -London – FTSE 100: DOWN 1.1 percent at 8,018.56 pointsParis – CAC 40: DOWN 1.2 percent at 7,206.22 Frankfurt – DAX: DOWN 1.2 percent at 19,725.94Tokyo – Nikkei 225: DOWN 0.3 percent at 38,701.90 (close)Hong Kong – Hang Seng Index: DOWN 0.2 percent at 19,720.70 (close)Shanghai – Composite: DOWN 0.1 percent at 3,368.07 (close)New York – Dow: UP less than 0.1 percent at 42,342.24 (close)Euro/dollar: UP at $1.0388 from $1.0364 on ThursdayPound/dollar: UP at $1.2509 from $1.2496Dollar/yen: DOWN at 156.73 yen from 157.35 yen Euro/pound: UP at 83.06 pence from 82.91 penceWest Texas Intermediate: DOWN 1.0 percent at $68.72 per barrelBrent North Sea Crude: DOWN 1.0 percent at $72.19 per barrel