European stock markets opened Thursday on a mixed note, extending a negative trend despite hitting record highs last week. The Stoxx 600 index fluctuated, with utilities stocks rising 1.6%, while the technology sector dropped 0.74%.
Notably, the UK’s FTSE 100 was down by 0.17%, and France’s CAC 40 fell by 0.69%, while Germany’s DAX gained 0.14%, and Spain’s IBEX 35 rose by 0.54%.
Investor sentiment is rattled by weaker-than-expected U.S. economic data, including manufacturing surveys and job openings, which have fueled speculation about larger Federal Reserve rate cuts.
Global technology stocks have taken a hit, with U.S. chipmaker Nvidia contributing to a significant sell-off, pulling down related stocks worldwide. In Asia, Japan’s Nikkei 225 experienced sharp declines after softer wage growth data.
Analysts, including George Lagarias, caution that while there is a slowdown, aggressive action by the Federal Reserve could be counterproductive and lead to market instability. Markets are awaiting crucial U.S. job data releases later this week, which could further influence global market trends.
CNBC