European stock markets opened on a mixed note Friday as a sell-off in Asian AI stocks weighed on sentiment. London's FTSE 100 and Frankfurt's DAX slipped into negative territory shortly after the open, while Paris's CAC 40 and Madrid's IBEX 35 posted modest gains.
Investors are turning cautious, awaiting the latest US non-farm payrolls report for clues on the Federal Reserve's next policy move. According to XTB research director Kathleen Brooks, there is now a near 40% chance of a rate hike by year-end.
The AI enthusiasm that had fueled a prolonged rally appears to be fading. On Wall Street Thursday, Broadcom shares sank 12.6% after disappointing guidance, dragging down other tech names like Micron Technology and CrowdStrike. Asian markets followed suit: South Korea's Kospi dropped 5.1%, with SK Hynix plunging 8.6% and Samsung Electronics shedding 5.4%. Japan's Nikkei 225 also declined.
Oil prices stabilized after recent losses, with Brent crude trading around $94.73 per barrel amid ongoing disruptions in the Strait of Hormuz and uncertainty over US-Iran ceasefire talks.