European Shares Slip as Tech Rally and Geopolitics Weigh
The STOXX 600 index fell 0.3% on Friday as technology stocks retreated following a two-month rally and disappointing results from U.S. chipmaker Broadcom. Investors remained cautious due to fragile Middle East peace efforts and strong U.S. jobs data that reinforced global interest rate hike expectations.
The STOXX 600 fell 0.3% to 622.66 points on Friday, losing 0.5% for the week as a technology rally stalled. The index declined after geopolitical tensions in the Middle East and strong U.S. employment data fueled expectations for prolonged high interest rates. This shift reflects growing investor caution as energy costs threaten to entrench inflation across the euro zone.
### Geopolitical Friction Drives Energy Volatility Middle East instability remains a primary concern for investors after the United States and Iran exchanged strikes earlier this week. While Brent Crude Oil fell for a second session, prices held near $93 a barrel. A fragile ceasefire between Israel and Lebanon added to the uncertainty after Hezbollah rejected the pact.
