- Ex-Stasi officer faces verdict over 1974 Berlin border killing
- Role of government, poverty research tipped for economics Nobel
- In milestone, SpaceX 'catches' megarocket booster after test flight
- In a first, SpaceX 'catches' megarocket booster after test flight
- Bangladeshi Hindus shrug off attack worries to celebrate festival
- Ubisoft fears assassin's hit over falling sales
- Vietnam, China hold talks on calming South China Sea tensions
- SpaceX will try to 'catch' giant Starship rocket shortly before landing
- Japan's former empress Michiko discharged after surgery: reports
- Japan's former empress Michiko discharged after surgey: reports
- 'Little Gregory' murder haunts France 40 years on
- Tariffs, tax cuts, energy: What is in Trump's economic plan?
- Amazon wants to be everything to everyone
- Jewish school in Canada hit by gunfire for second time
- With medical report Harris seeks to play health card against Trump
- China-EU EV tariff talks in Brussels end with 'major differences': Beijing
- Buried Nazi past haunts Athens on liberation anniversary
- Harris to release medical report confirming fitness for presidency: campaign
- Nobel prize a timely reminder, Hiroshima locals say
- China offers $325 bn in fiscal stimulus for ailing economy
- Small Quebec company dominates one part of NHL hockey: jerseys
- Boeing to cut 10% of workforce as it sees big Q3 loss
- Want to film in Paris? No sexism allowed
- US, European markets rise as investors weigh rates, earnings
- In Colombia, children trade plastic waste for school supplies
- JPMorgan Chase profits top estimates, bank sees 'resilient' US economy
- Little progress at key meet ahead of COP29 climate summit
- 'Party atmosphere': Skygazers treated to another aurora show
- Kyrgyzstan opens rare probe into glacier destruction
- European Mediterranean states discuss Middle East, migration
- Thunberg leads pro-Palestinian, climate protest in Milan
- Stock markets diverge before China weekend briefing
- EU questions shopping app Temu over illegal products risk
- Han Kang's books sell out in South Korea after Nobel win
- Shanghai markets sink ahead of briefing on mixed day for Asia
- Investors, analysts eye bigger China stimulus at Saturday briefing
- Musk unveils robotaxi, pledges it 'before 2027'
- At least 11 dead in Florida but Hurricane Milton not as bad as feared
- Asian markets mixed after Wall St drop, Shanghai dips before briefing
- Automaker Stellantis says CEO will retire in 2026
- Musk's promised robotaxi unveil delayed
- On US coast, wind power foes embrace 'Save the Whales' argument
- At least 10 dead in Florida after Hurricane Milton spawns tornadoes
- Internet Archive reels from 'catastrophic' cyberattack, data breach
- Wall Street stocks retreat from records on US inflation data
- Israel strikes central Beirut, killing 22
- Solar storm could impact US hurricane recovery efforts: agency
- Delta eyes Election Day travel pullback as profits climb
- Florida battered by hurricane, floods but spared 'worst-case scenario'
- UK's William and Kate in first joint public engagement since cancer treatment
Markets struggle but tech shares soar over AI
Global stock markets struggled Thursday as the US debt standoff dragged on and Germany entered recession, but tech shares surged after US chip firm Nvidia reported bumper earnings thanks to the AI boom.
Wall Street opened mixed with the Dow and S&P 500 slumping after ratings agency Fitch placed the country's AAA-ranked credit on "rating watch negative" amid the stalled talks on raising the US debt ceiling.
Clifford Bennett, chief economist at ACY Securities, warned the stakes are high in the event of a default.
"Market shock and ramifications will be profound and extend outward over several years," Bennett said.
"US bond prices and bonds around the world will drop. The US dollar will be strong at first on safe-haven and ever higher yields long term. The equity market can simply drop like a stone."
Fitch said its warning on the US rating "reflects increased political partisanship that is hindering reaching a resolution to raise or suspend the debt limit" ahead of a looming deadline.
The announcement raises the possibility of a first ratings downgrade since another ratings agency, S&P, did so during a similar standoff in 2011.
The US Treasury Department has said June 1 is the "X-date" when the government will run out of money, triggering a default with likely devastating economic consequences.
Talks earlier this week between President Joe Biden and Republican House Speaker Kevin McCarthy were described as "productive" but the two sides have made little progress since, with Republicans demanding spending cuts but Democrats calling for a "clean" increase.
Analysts said that while there is a broad expectation an agreement will ultimately be reached, investors were growing increasingly agitated and risk-averse.
Worries over the possibility of more Federal Reserve interest rate hikes were also dampening sentiment.
Minutes from the Fed's most recent policy meeting showed officials split on what to do at their June gathering, with inflation still more than double a two percent target.
But the tech-rich Nasdaq soared following US chip company Nvidia's positive earnings report Wednesday, which showed the artificial intelligence trend is fuelling demand for its sophisticated chips.
Nvidia's shares surged by almost 25 percent after Wall Street opened on Thursday.
- German recession -
In Europe, the Frankfurt DAX traded marginally lower, while London's FTSE 100 was down 0.7 percent and the Paris CAC 40 shed 0.2 percent in afternoon deal.
German data showed that Europe's biggest economy entered recession in the first quarter, contracting by 0.3 percent after shrinking by 0.5 percent in the last three months of 2022.
The European single currency recoiled to a two-month low at $1.0714 before clawing back ground.
"German sentiment took a hit this morning," Scope Markets analyst Joshua Mahoney told AFP, noting German's recession was led by declining household consumption and government spending.
"While many will see this contraction as a warning sign that Europe's largest economy will drag the region lower, the optimists will also look at these figures as a sign that higher rates are cooling consumption which will ultimately drive inflation lower."
Most Asian equities also sank on fears over the prospect of a US default, while oil prices retreated on profit-taking after three straight sessions of gains.
- Key figures around 1345 GMT -
New York - Dow: DOWN 0.3 percent at 32,687.61 points
Frankfurt - DAX: DOWN 0.1 percent at 15,822.52
London - FTSE 100: DOWN 0.7 percent at 7,572.36
Paris - CAC 40: DOWN 0.2 percent at 7,235.78
EURO STOXX 50: UP 0.2 percent at 4,272.28
Tokyo - Nikkei 225: UP 0.4 percent at 30,801.13 (close)
Hong Kong - Hang Seng Index: DOWN 1.9 percent at 18,746.92 (close)
Shanghai - Composite: DOWN 0.1 percent at 3,201.26 (close)
Euro/dollar: DOWN at $1.0712 from $1.0750 on Wednesday
Pound/dollar: DOWN at $1.2337 from $1.2365
Dollar/yen: UP at 139.64 yen from 139.47 yen
Euro/pound: DOWN at 86.84 pence from 86.94 pence
West Texas Intermediate: DOWN 2.8 percent at $72.23 per barrel
Brent North Sea crude: DOWN 2.0 percent at $76.30 per barrel
burs-rfj/giv/lth
D.Philippon--CPN