LONDON — European markets are expected to open mixed on Friday as investors react to a U.S. tech sell off.
The U.K.’s FTSE 100 is set to open slightly lower, while futures in France’s CAC index and Italy’s FTSE MIB were seen 0.1% higher, according to IG. Germany’s DAX index was seen little changed from the previous session.
European stocks closed lower on Thursday, with most sectors and major bourses ending the session in negative territory after a busy earnings day.
Drinks giant Diageo was one of the biggest movers. Its stock fell 6.5% after the London-listed firm cut its full-year guidance, citing weakness in the Chinese and U.S. markets.
As earnings continue, among those reporting on Friday are Richemont, International Consolidated Airlines Group SA, Daimler Truck Holding AG, Amadeus IT Group SA, Cellnex Telecom SA and OTP Bank NYRT.
Investors will also be paying attention to a swathe of data, including import and export data in Germany and French trade figures. The U.K.’s House Price Index is also expected today.
The releases follow central bank decisions that saw the Bank of England and Norway’s central bank hold rates steady.
BOE Governor Andrew Bailey signaled to CNBC that rate cuts are coming, with economists now pricing in a pre-Christmas rate cut.
“We’re past peak-restrictiveness, which is what you’d expect given that we’ve cut interest rates five times [since Aug. 2024]. For my part, I feel policy is still restrictive, but it’s past peak restriction,” Bailey told CNBC’s Ritika Gupta.
Asian markets fell overnight, tracking Wall Street’s tech-led sell-off. Japan’s benchmark Nikkei 225 index, which has made gains recently, tumbled 2.03%, with shares of AI-related stocks leading losses. Softbank, which is due to report next week, was down over 8%.
Stateside, the tech rally appeared to lose steam on Thursday — or at least take a break. The biggest U.S. declines were from Nvidia, Microsoft, Palantir Technologies, Broadcom and Advanced Micro Devices, signaling that investors are cooling on AI-related stocks. CNBC’s Jim Cramer put it down to bubble fears and the length of the government shutdown.
Elsewhere, billionaire Elon Musk won approval for an up to $1 trillion pay package from Tesla shareholders, with 75% support among voting shares.
