A forecast released by France's state statistics agency Insee on Friday night (Australian time) predicted that country's economy would shrink over this quarter and the first quarter of next year, putting it into a recession.
The news helped send European equities markets lower, with London's FTSE 100 finishing down 0.25 per cent at 5387.34 and Paris' CAC-40 falling 0.88 per cent to 2972.30 during Friday's session. Germany's DAX 30 dropped by 0.50 per cent to 5701.78.
However, US markets fared better, with the S&P 500 climbing 3.91 points (0.32 per cent) to 1219.66, and the tech-heavy Nasdaq Composite adding 14.32 points (0.56 per cent) to 2555.33.
The Dow Jones Industrial Average slipped 2.42 points (0.02 per cent) to close at 11,866.39 on Friday.
Meanwhile ratings agency Moody's cut Belgium's credit rating by two notches - from Aa1 to Aa3 - on Saturday, citing tough conditions for European countries to borrow money.
AMP chief economist Shane Oliver said the flow of negative news would probably see Australian shares open flat or slightly lower on Monday.
At the close on Friday, the benchmark S&P/ASX 200 index was up 19.4 points, or 0.47 per cent, at 4,159.2, while the broader All Ordinaries index was up 21 points, or 0.5 per cent, at 4,218.8. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today
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