World shares exhibited a mixed performance on Friday following a survey that revealed weakening Chinese factory activity in May due to declining export orders.
U.S. futures remained largely unchanged, and oil prices slipped ahead of an upcoming OPEC meeting this weekend.
Technology-related stocks experienced significant declines, with Nvidia—a recent market favorite due to Wall Street’s enthusiasm for artificial intelligence—falling by 3.8% on Thursday.
European markets opened slightly higher. Paris’s CAC 40 inched up by 0.1% to 7,986.65, the FTSE 100 in London rose by 0.4% to 8,259.68, and Germany’s DAX remained nearly flat at 18,500.20.
Futures for the S&P 500 dipped by 0.1%, while the Dow Jones Industrial Average futures saw virtually no change.
Investors are anticipating a monthly update on a key inflation gauge favored by the Federal Reserve on Friday, which could impact market sentiment. Additionally, the tail end of the earnings reporting season has shown profits exceeding expectations for early 2024.
In Asian markets, Tokyo’s Nikkei 225 gained 1.1% to 38,487.90 amid reports of significant investments from government-backed pension funds and other major institutional investors. However, semiconductor maker Tokyo Electron declined by 2.5%.
The Nikkei financial news outlet reported that Japan plans to inject nearly 100 trillion yen ($638 billion) in public funds into the markets, following the example set by the Government Pension Investment Fund.
Chinese shares retreated late in the day after reports indicated further pressure on an already strained economy due to a prolonged property industry crisis. Hong Kong’s Hang Seng index dropped by 0.8% to 18,079.61, while the Shanghai Composite index fell by 0.2% to 3,081.81.
Australia’s S&P/ASX 200 rose by 1% to 7,701.70, and South Korea’s Kospi remained flat at 2,653.52. Taiwan’s Taiex decreased by 0.9% as shares of its largest company, Taiwan Semiconductor Manufacturing Corp., fell by 2%, mirroring declines in other major technology firms.
Nvidia’s decline contributed to a 1.1% drop in the Nasdaq composite, while the S&P 500 fell by 0.6%, despite the majority of stocks in the index and across Wall Street rising. The Dow Jones Industrial Average dropped by 0.9%.
Stock markets received some relief from easing Treasury yields, which had risen earlier in the week due to concerns over weak demand for Treasury bonds in recent U.S. government auctions. Higher yields typically exert downward pressure on various investments.
Yields decreased on Thursday after reports indicated that the U.S. economy was not as robust as anticipated. The yield on the 10-year Treasury stood at 4.572%, down from 4.54% late Thursday.
In early trading on Friday, U.S. benchmark crude oil slipped by 10 cents to $77.81 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude oil, the international standard, declined by 2 cents to $81.86 per barrel.
The U.S. dollar strengthened to 157.20 Japanese yen from 156.82 yen. The euro rose slightly to $1.0837 from $1.0834.
