In European Equity Markets ended lower on Friday afternoon, tracking a decline in U.S. stocks futures after tech titans Amazon and Google parent Alphabet Inc missed earnings expectations. The pan-European Stoxx 600 was down 1.7 percent. The U.K.’s FTSE 100, France’s CAC 40 and Germany’s DAX are all trading more than 2 percent lower. France’s Valeo sank to the bottom of the benchmark, after the car parts company slashed its sales and earnings targets citing industry disruption. Shares of the Paris-listed stock fell 23 percent on the news.
In Currency Markets the U.S. dollar rose to a two-month high of 96.860 against a basket of major currencies in morning trading on Friday after U.S. headline third-quarter gross domestic product data exceeded estimates. GDP increased at a 3.5 percent annualized rate, the Commerce Department said on Friday in its first estimate. Against the dollar, the yen was at its strongest since Sept. 13, up 0.61 percent on the day, last at 111.68. The franc was up modestly, last at $1.00, after retracing some gains made earlier in the day. The euro, meanwhile, fell to a 10-week low of $1.133.
In Commodities Markets oil prices fell on Friday, heading for a third weekly loss after Saudi Arabia warned of oversupply, while a slump in stock markets and concerns about trade clouded the outlook for fuel demand. Brent crude oil fell $1.12 or 1.5 percent to a low of $75.77 per barrel and was trading around $76.34, down 55 cents. The contract is on course for a weekly loss of over 4 percent and is down more than $10 in three weeks. U.S. crude was 60 cents lower at $66.73, set for a 3.4 percent loss this week.
In US Equity Markets stocks fell on Friday as grim earnings reports from Amazon and Alphabet rekindled a rush to sell technology and high-growth stocks, but data showing economic growth in the last quarter slowed less than expected provided some relief. The Nasdaq fell nearly 2 percent, sharply cutting its gains for the year and moving deeper into correction territory, while S&P fell 1.56 percent, putting under threat their slim gains for the year. Amazon.com Inc fell 7.1 percent after it not just missed quarterly sales estimates, but also gave a below par holiday-season sales forecast.
In Bond Markets U.S. Treasury yields rose from three-week lows on Friday after data showed the U.S. economy slowed less than expected in the third quarter. Benchmark 10-year notes were up 11/32 in price on the day to yield 3.094 percent, up from a three-week low of 3.077 percent set earlier on Friday. Bonds were bid overnight as stock markets slid, with the decline occurring after Alphabet and Amazon’s earnings missed expectations on Thursday.