finance
European Markets Open Mixed After AI Stocks Fall in Asia
European stock indexes opened with mixed results on Friday after major declines in Asian markets and sharp drops in several U.S. artificial intelligence-related shares the previous day. Investors are watching U.S. employment data and developments in the Middle East.
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European stock markets opened mixed on Friday after Asian benchmarks fell and several U.S. artificial intelligence-related shares posted sharp declines the previous session. London's FTSE 100 dropped nearly 0.4 percent and Frankfurt's DAX lost 0.3 percent shortly after the open.
Paris's CAC 40 and Madrid's IBEX 35 each rose 0.3 percent, while Milan's main index and the EURO STOXX 50 remained flat.
The U.S. employment figures are viewed as relevant to expectations for Federal Reserve policy. Kathleen Brooks, research director at XTB, said in a market note that there is now a near 40 percent chance of a rate hike by year-end and that markets will be sensitive to the data.
The report will be the first released with Kevin Warsh as chairman of the Federal Reserve. Oil prices stabilized after Thursday's decline. Brent crude traded at $94.73 per barrel at 10:00 CET, while benchmark U.S. crude stood at $92.51 per barrel. The Strait of Hormuz remains effectively closed, and American and Iranian negotiators reached a tentative deal last week to extend their ceasefire, though the agreement has not been finalized.
Street rose on Thursday after falling oil prices and bond yields eased pressure on stocks. Banks led gains, with Goldman Sachs up 5 percent, Fifth Third Bancorp up 4.7 percent, and U.S. Bancorp up 4.4 percent. Broadcom shares fell 12.6 percent after the company issued guidance below investor expectations.
Micron Technology dropped 7.7 percent and CrowdStrike Holdings declined 3.8 percent. The S&P 500 rose 0.4 percent and the Dow Jones Industrial Average gained 1.7 percent to a record high, while the Nasdaq Composite edged 0.1 percent lower. In Asia, South Korea's Kospi fell 5.1 percent to 8,199.44.
SK Hynix plunged 8.6 percent and Samsung Electronics shed 5.4 percent. Japan's Nikkei 225 slipped 1.3 percent to 66,573.85, Hong Kong's Hang Seng declined 1.2 percent to 24,948.96, and Australia's S&P/ASX 200 fell 0.7 percent to 8,623.50. The U.S. dollar traded at 159.96 Japanese yen, the euro at $1.1635, and gold prices were down 0.3 percent at around $4,490.70.
