European shares opened higher on Friday while Asian stocks retreated following a National Day of Mourning in the U.S. for former President Jimmy Carter. Germany's DAX remained flat at 20,316.29, the CAC 40 in Paris slipped 0.1% to 7,486.82, and London's FTSE edged 0.1% lower to 8,312.55.
The future for the S&P 500 was down 0.4% and the Dow Jones Industrial Average was 0.3% lower. Markets in Asia experienced a broad decline, reflecting concerns about potential interest rate cuts by the Federal Reserve due to recent data showing unexpected strength in the U.S. economy.
Fed officials, as per minutes from a recent meeting, indicated a possible slowdown in interest rate cuts this year due to inflation concerns and potential policy changes under the incoming administration. Investors are cautious about the uncertainty surrounding future tariff policies, particularly with regards to China and other economies in the region.
Attention was on the U.S. non-farms jobs report due later in the day. In Tokyo, the Nikkei 225 index lost 1.1%, South Korea's Kospi shed 0.2%, and Chinese markets saw declines with the Hang Seng in Hong Kong down 0.9% and the Shanghai Composite index falling 1.3%.
In Australia, the S&P/ASX 200 gave up 0.4%, Bangkok's SET rose 0.3%, while the Sensex in India dropped 0.3%. U.S. bond yields remained steady after recent increases, impacting the stock market negatively. The 10-year Treasury yield was at 4.69%, slightly below its recent high.
Higher yields have raised concerns about borrowing costs for companies and households, pushing some investors towards bonds. U.S. benchmark crude oil rose to $75.04 per barrel, and Brent crude reached $78.06 per barrel. The U.S. dollar fell against the Japanese yen and the euro rose slightly.
