Global Economy
European Markets Set to Open Higher as Tech Anxiety Fades
European equity markets are poised to start Friday in positive territory after recent worries about heavy AI spending eased. Futures point to gains across the CAC 40, DAX, FTSE 100 and STOXX 600, while investors await earnings from major French groups and July inflation data that could be spurred by rising oil prices amid renewed Middle‑East tensions.
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Market outlook
European equity markets are expected to start the day in the green on Friday, as investors regain confidence following the easing of recent tech‑sector worries.
Futures indicate a broad rally
Pre‑market futures point to gains of 0.57% for Germany’s DAX, 0.50% for the UK’s FTSE 100, and 0.72% for the pan‑European STOXX 600. The CAC 40 in Paris could open up 0.59%.
Tech shake‑out eases
After a sharp pullback on Thursday in New York, driven by concerns over heavy AI spending, the rebound in semiconductor names and a 15% jump in Microsoft helped calm the market. Analysts say the AI‑driven demand remains robust and that the recent sell‑off was likely an over‑reaction.
Earnings and inflation data on the agenda
Investors will be watching earnings reports from Crédit Agricole, AXA, Engie and Forvia, alongside the upcoming preliminary inflation figures for July in France and the euro‑zone, which could be pushed higher by rising oil prices after renewed Middle‑East tensions.
Geopolitical backdrop
Escalating conflict in the Middle East, including a drone strike that ignited fires on two tanker vessels in Egypt’s Damietta port, threatens Suez Canal traffic and adds a layer of uncertainty to market sentiment.
Monetary policy updates
Following the Federal Reserve’s and Bank of England’s rate decisions earlier this week, the Bank of Japan kept its policy rate unchanged on Friday but reiterated its readiness to tighten if inflationary pressures persist.
Overall, the combination of easing tech concerns and positive earnings expectations is expected to lift market morale, despite ongoing geopolitical risks.