Major European Indices Close Lower, US Tech Stocks Rally
European stock indices closed mostly lower on Friday, with the German DAX falling 1.44%, while US tech stocks rallied, led by the Nasdaq up 1.32%.
Major European indices closed lower on Friday, with the German DAX falling 1.44%, France's CAC down 1.09%, and the UK's FTSE 100 losing 0.43%. Spain's Ibex slipped 0.95%, while Italy's FTSE MIB ended unchanged. For the week, the DAX eked out a 0.06% gain, the CAC slipped 0.03%, and the FTSE 100 fell 1.26%. The Ibex rose 0.61% and the MIB added 2.16%.
For forex and currencies traders, the divergence between European and US equity performance can influence risk sentiment and capital flows. A weaker European stock market may weigh on the euro and pound, as investors seek safer assets. Conversely, the rally in US tech stocks supports the dollar and risk-on currencies. Live fx prices on NowPrice show how the market is reacting in real time, with the euro and pound trading near recent ranges against the dollar.
Looking ahead, traders will monitor next week's eurozone GDP data and US inflation figures for further direction. The European Central Bank's policy stance and any shifts in risk appetite will also be key. A sustained divergence in equity performance could lead to further euro weakness if European indices continue to underperform.