European stocks opened lower on Friday, giving back part of Thursday's post-Fed rebound as investors digested the Bank of Japan's rate hike. Telecom and food shares led losses while chipmakers gained, and the pan-European STOXX 600 stayed on track for its first weekly gain in three.
European stocks slipped at Friday's open, pulling back a slice of Thursday's rebound as traders weighed the Bank of Japan's latest move a day after the Fed's own rate decision.
European benchmarks ease across the board
The Eurostoxx fell 0.2%, Germany's DAX slid 0.4%, France's CAC 40 dropped 0.4%, the UK's FTSE lost 0.3%, Spain's IBEX fell 0.4% and Italy's FTSE MIB slipped 0.3%. The pan-European STOXX 600 dipped 0.2% to 641.57 points by 0717 GMT, after climbing more than 1% over the prior two sessions. The pullback looks like light profit-taking and consolidation rather than fresh risk-off selling, following Thursday's strong post-Fed gains.
Telecoms and food shares lead the pullback
Telecom stocks led the losses, dipping 1.8% early on, with Deutsche Telekom down 3.1% and Airtel Africa down 4.8%. Food and beverage shares lost 1% as Nestle dipped 1.2% after Russia seized control of the Swiss company's local assets. Technology shares bucked the trend, gaining 0.9%, with chip-related Aixtron and Infineon Technologies leading the gains.
BOJ hike and Wall Street's tech rebound set the backdrop
Attention centered on the Bank of Japan, which raised its policy rate by 25 basis points to 1.25%, the highest level in 31 years. The seven-two vote split, which included two dovish dissents, softened the message and helped push USD/JPY back toward 157 rather than triggering a broader risk-off reaction.
Brent crude fell nearly 2% to $102.80, extending its decline for a third straight session as concerns over disruption to Saudi supply eased. Wall Street's backdrop stayed constructive after Thursday's tech-led rebound, with S&P 500 futures up 0.3% and Nasdaq futures up 0.7% heading into the session.
The STOXX 600 nonetheless remained on track for its first weekly gain in three, in a week packed with rate decisions from the Fed and the Bank of England.
Sources: Investinglive, Reuters via Investing.com
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