- Crude stable after Israel-Iran surge, Hong Kong stocks resume gains
- Hera spacecraft to probe asteroid deflected by defence test
- US dockworkers to head back to work after tentative deal
- After Helene's destruction, North Carolina starts to rebuild
- Dockers end three-day strike at Montreal port
- What next for OpenAI after $157 billion bonanza?
- Israel-Hamas war causes 86-percent dive in Gaza GDP: IMF
- Milan's Morata moves house after Inter-fan town mayor 'violates' privacy
- 'Devastating' storm hits Augusta National but Masters will go on
- Relief in Brazil, Asia over delay to EU deforestation rules
- Oil prices jump, stocks fall on Middle East tensions
- Biden says 'discussing' possible Israeli strikes on Iran oil facilities
- Oil prices rise, stocks fall on Middle East tensions
- Oil rallies, stocks mostly retreat on Middle East tensions
- Phasing out teen smoking could save 1.2 mn lives: study
- 'Welcome relief': Asia producers hail EU deforestation law delay
- Japan PM slated to announce plans for 'happiness index'
- Turkish inflation falls less than expected in September at 49.4%
- Easing inflation lifts profit at UK supermarket Tesco
- Skiing calls on UN climate science to combat melting future
- China wine industry looks to breed climate resilience
- Tokyo rallies on weak yen, Hong Kong drops after surge
- Dutch airline KLM unveils 'firm' cost-cutting measures
- Carpe diem: the Costa Rican women turning fish into fashion
- Senegal looks to aquaculture as fish stocks dwindle
- Will AI one day win a Nobel Prize?
- Climate change, economics muddy West's drive to curb Chinese EVs
- Argentina's Milei vetoes university budget after huge protests
- TotalEnergies plans to grow oil and gas production until 2030
- 2024 Nobels offer glimmer of hope as global crises mount
- Tokyo rallies on weak yen, Hong Kong reverses after surge
- Tunisia readies for vote as incumbent Saied eyes victory
- High childcare costs in US weigh on women's employment
- US voters seek help with crushing childcare costs
- Taiwan shuts down for second day as Typhoon Krathon to land
- Supercharged storms: how climate change amplifies cyclones
- Biden official urges talks as US port strike enters second day
- Huge protests in Argentina over public university cuts
- Rally in oil prices loses steam on mixed day for global stocks
- South America treated to rare 'ring of fire' eclipse
- Biden official says port strike deal not as far as parties think
- Mexico's new president offers apology for 1968 student massacre
- Historic funding round values OpenAI at $157 billion
- Mixed US car sales in Q3 as industry hopes for post-election bounce
- Thunderstorms are a 'boiling pot' of gamma rays, scientists find
- Scientists unlock secret of 'Girl With Pearl Earring'
- Dolphins flash friendly grins when they're ready to play
- Facing backlash, EU moves to delay deforestation rules
- US private sector adds more jobs than expected in September: ADP
- Boys out of critical condition after Zurich stabbings
NGG | -2.7% | 66.97 | $ | |
AZN | -2.12% | 77.93 | $ | |
SCS | -1.98% | 12.62 | $ | |
BP | 0.28% | 32.46 | $ | |
CMSC | -0.16% | 24.74 | $ | |
RIO | -1.42% | 69.83 | $ | |
BCC | -0.9% | 138.29 | $ | |
GSK | -2.81% | 38.37 | $ | |
RYCEF | 1.15% | 6.98 | $ | |
RBGPF | 100% | 58.93 | $ | |
CMSD | -0.16% | 24.89 | $ | |
BTI | -2.45% | 35.11 | $ | |
BCE | -1.77% | 33.84 | $ | |
JRI | -0.6% | 13.3 | $ | |
VOD | -0.52% | 9.69 | $ | |
RELX | -1.46% | 46.61 | $ |
European stocks back in black, but euro under pressure
European stocks pushed back into positive territory but Wall Street traded lower on Friday at the end of a choppy week, while Snap shares fell off a cliff after reporting bleak quarterly results.
Meanwhile, the euro came under pressure after a key survey suggested the single-currency area could be on the verge of recession due to slumping demand and rising costs.
A bigger-than-expected hike in interest rates by the European Central Bank failed to provide a lasting boost to the euro, as political turmoil in Italy also clouds the outlook.
Economic activity in the eurozone plummeted in July, the closely watched purchasing managers' index, or PMI, showed, with a big drop in manufacturing and consumers' post-lockdown spending sprees braked by high prices.
The barometer fell from 52.0 in June to 49.4, below the 50-point level that indicates growth and the lowest level in 17 months.
The data "point to a fall in gross domestic product of 0.5 percent to 1.0 percent at the start of the third quarter, supporting our view that the eurozone economy is headed for a technical recession come the fourth quarter," said Melanie Debono, economist at Pantheon Macroeconomics.
Andrew Kenningham, economist at Capital Economics, agreed.
"The eurozone is teetering on the brink of recession. The ECB will have to follow up on yesterday's historic rate hike with several more in the coming months even though this will worsen the downturn," he said.
Nevertheless, Paris' CAC 40 index rose 0.3 percent and the DAX in Frankfurt edged higher. London's FTSE 100 also managed a tiny gain.
It has been a rollercoaster week as investors try to gauge the outlook -- corporate earnings have so far been relatively positive, but mixed economic data and geopolitical events are clouding sentiment.
Results by Snap, the owner of the Snapchat messaging app, landed like a bombshell, however, with quarterly losses nearly tripling to $422 million despite revenue increasing 13 percent under conditions "more challenging" than expected.
Its shares plummeted nearly 38 percent.
"Snap is getting bludgeoned," said market analyst Patrick J. O'Hare at Briefing.com.
Michael Hewson at CMC Markets said: "Snap has acted as the canary in the coal mine before when it comes to being a leading indicator for what might be coming as far as slowdowns in advertising sales."
The fact that Snap's revenues fell short due to weaker advertising sales "bodes ill for Alphabet and Meta Platforms next week" when they release their second quarter earnings. Alphabet owns Google while Meta is the parent company of Facebook.
Wall Street's tech-heavy Nasdaq Composite index slumped 1.4 percent in late morning trading, while the S&P 500 shed 0.6 percent and the Dow dipped 0.1 percent.
The US PMI coming in at 47.5 -- the first time in contraction territory in over two years -- dampened sentiment.
"US stocks are under pressure as recession fears run wild as business activity contracts and the labor market shows signs of weakness," said Edward Moya at OANDA.
Chris Beauchamp, chief market analyst at online trading platform IG, said this week's rebound in equities had lasted longer than previous ones but was on borrowed time.
Investors "will be wary of pushing their luck too hard into next week, given the avalanche of earnings heading their way, plus a (US Federal Reserve interest rate) decision and the first reading on US second quarter GDP that might easily provide fresh recession worries."
Earlier in Asia, markets had started brightly but lost some of their lustre as the day wore on.
- Key figures at around 1530 GMT -
New York - Dow: DOWN 0.1 percent at 31,998.41 points
EUROSTOXX 50: FLAT at 3,596.49
London - FTSE 100: UP less than 0.1 percent at 7,276.37 (close)
Frankfurt - DAX: UP less than 0.1 percent at 13,253.68 (close)
Paris CAC 40: UP 0.3 percent at 6,216.82 (close)
Tokyo - Nikkei 225: UP 0.4 percent at 27,914.66 (close)
Hong Kong - Hang Seng Index: UP 0.2 percent at 20,609.14 (close)
Shanghai - Composite: DOWN 0.1 percent at 3,269.97 (close)
Euro/dollar: DOWN at $1.0221 from $1.0232 on Thursday
Pound/dollar: UP at $1.2027 from $1.2002
Euro/pound: DOWN at 84.98 pence from 85.22 pence
Dollar/yen: DOWN at 136.12 yen from 137.34 yen
West Texas Intermediate: UP 1.0 percent at $97.35 per barrel
Brent North Sea crude: UP 1.2 percent at $105.12 per barrel
burs-rl/cdw
O.Hansen--CPN