Key facts
- European shares edged up on Friday, erasing earlier losses.
- Middle East hostilities and U.S.-Iran peace talks in limbo contributed to investor caution.
- An AI-driven selloff continued after Broadcom reported underwhelming results.
- Technology stocks experienced a selloff, with South Korea's Kospi plunging 7%.
- Oil prices eased slightly, with Brent crude at $94.53 a barrel.
- The dollar was on track for a weekly rise, supported by the Middle East conflict.
European shares edged up 0.2% on Friday, erasing earlier losses, as investors adopted a defensive stance ahead of the weekend due to heightened Middle East tensions and stalled U.S.-Iran peace talks. The AI-driven selloff, triggered by chipmaker Broadcom's underwhelming results, continued for a second day, with investors taking profits after a significant rally. South Korea's tech-heavy Kospi plunged 7%, as investors de-risked the semiconductor chain. Nasdaq and S&P 500 futures also fell. Cryptocurrencies extended their recent declines. Oil prices eased slightly, with Brent crude at $94.53 a barrel and U.S. crude at $92.61, both set for their first weekly gain in three weeks. The dollar was on track for a 0.5% weekly rise, supported by the Middle East conflict. The yen remained near 160 per dollar, with Japanese officials issuing warnings about the currency. Attention now turns to the U.S. nonfarm payrolls data, with forecasts suggesting a solid rise in employment.