London (AFP) – US markets moved ahead while European counterparts marked time Friday in response to sharp losses in Asia at the end of a week which has seen heightened fears of a bursting AI bubble. A blockbuster earnings report from chip bellwether Nvidia on Wednesday seemed to soothe concerns that vast investments in the artificial intelligence sector may have been overdone. Nvidia was down 0.3 percent, shoring up earlier losses, mid-session on Wall Street as warnings grew that the tech-led rally may have run its course across equities — which has seen several markets hit record highs and companies clock eye-watering capitalisations.
Adding to unease was mixed US jobs data Thursday that added to expectations that the Federal Reserve could decide against cutting interest rates in December. That unease spread to Asia, with Tokyo, Hong Kong and Shanghai all ending the week down almost 2.5 percent at the close. The clouds began to clear to a degree, however, as the Dow stood up 0.9 percent more than two hours in, while the tech-heavy Nasdaq and the broader-based S&P 500 both added more than half of one percent.
“This week’s sharp sell-off in US stocks and cryptocurrencies briefly stalled as Fed December rate cut expectations increased from 41 percent to 73 percent after New York Fed President John Williams suggested the Fed may cut rates again soon,” said Axel Rudolph, senior technical analyst at IG, even as the Nasdaq headed for a third straight losing week. Europe lacked direction as London ended just a sliver in the green, Paris was flat — although Ubisoft provided a glimmer of light with a 4.5 percent rise — while Frankfurt lost 0.8 percent.
French video game company Ubisoft resumed trading in Paris, a week after stunning investors by postponing its results announcement without an explanation, triggering speculation in the video gaming world, including on a possible takeover operation in a consolidating industry. The “Assassin’s Creed” maker said Friday the move was due to a simple “restatement” of its half-yearly results after new auditors found problems with the way it had accounted for a partnership. Ubisoft’s stock initially soared 11.5 percent before settling back at 7.06 euros — the company’s shares are today some 40 percent lower than a year ago.
“European markets are showing their relative resilience” Friday compared to sharper falls on tech-heavy indices in Asia, noted Joshua Mahony, chief market analyst at trading group Scope Markets. The rush from risk assets saw bitcoin hit a seven-month low at $81,569.79 before pulling back to around $83,500 — extending a sell-off suffered since its record high above $126,200 last month.
“The price action across markets has been prolific, and we’ve seen some truly impressive reversals in risk assets,” said analyst Chris Weston at broker Pepperstone. “Sentiment in so many markets remains highly challenged, and we’ve seen new evidence that managers are dumping their 2025 winners — raising expectations that the path of least resistance is for risk to trade lower in the near-term,” he added.
– Key figures at around 1645 GMT –
New York – Dow: UP 0.9 percent at 46,181.56 points
New York – S&P 500: UP 0.7 percent at 6,585.36
New York – Nasdaq Composite: UP 0.5 percent at 22,193.86
London – FTSE 100: UP 0.1 percent at 9,539.71 (close)
Paris – CAC 40: FLAT at 7,982.65 (close)
Frankfurt – DAX: DOWN 0.8 percent at 23,091.87 (close)
Tokyo – Nikkei 225: DOWN 2.4 percent at 48,625.88 (close)
Hong Kong – Hang Seng Index: DOWN 2.4 percent at 25,220.02 (close)
Shanghai – Composite: DOWN 2.5 percent at 3,834.89 (close)
Dollar/yen: DOWN at 156.88 yen from 157.55 yen on Thursday
Euro/dollar: DOWN at $1.1495 from $1.1525
Pound/dollar: UP at $1.3086 from $1.3070
Euro/pound: DOWN at 87.84 from 88.18 pence
Brent North Sea Crude: DOWN 1.7 percent at $62.19 per barrel
West Texas Intermediate: DOWN 2.0 percent at $57.82 per barrel
© 2024 AFP
