European stock markets closed without a single direction this Friday (5) in an environment marked by the global liquidation of tech stocks linked to semiconductors and the reassessment of the outlook for United States monetary policy, after the May payroll came in higher than expected.
In London, the FTSE 100 closed up 0.07%, at 10,368.05 points. In Frankfurt, the DAX fell 0.69%, to 24,773.72 points. In Paris, the CAC 40 lost 0.32%, to 8,218.24 points. In Milan, the FTSE MIB fell 0.56%, to 49,893.05 points. In Madrid, the Ibex 35 rose 0.46%, to 18,359.80 points. In Lisbon, the PSI 20 gained 0.13%, at 8,931.54 points. Quotes are preliminary.
Actions linked to AI (artificial intelligence) continued to put pressure on chip manufacturers. Infineon fell around 8.7% in Frankfurt, while ASML lost almost 2.2% in Amsterdam, following the global movement triggered by the negative reaction to Broadcom’s balance sheet.
In Helsinki, Nokia gave up more than 5.8%, giving back part of the sector’s recent gains, which fell 2.8%.
Macroeconomic data also pressured markets. A review showed that euro zone GDP shrank 0.2% in the first quarter, compared to a previous estimate of a 0.1% increase. In the United States, the May payroll exceeded expectations and reinforced bets on interest rate hikes by the Fed (Federal Reserve) later this year.
The outlook for European interest rates also remained on the radar on the eve of next week’s ECB (European Central Bank) meeting. Commerzbank predicts an increase in the main rates of the BC led by Christine Lagarde at this month’s meeting, with a possible signal of another future increase.
Among other highlights, Raspberry Pi soared 25.8% in London after projecting annual profit significantly above market expectations. Evoke advanced 11.8% after accepting a takeover offer from Bally’s Intralot.
On the other hand, Bodycote fell 12.9% after Apollo Global Management gave up on formalizing a proposal to purchase the company.
Investors also continued to monitor developments in the conflict in the Middle East and its potential impacts on growth and inflation.
*With information from Dow Jones Newswires.
