Berliner Tageblatt - US election, tech jitters rattle global stocks

Data showing the US Federal Reserve's preferred inflation measure cooled further last month and now sits just above its long-term target -- a positive sign for future interest-rate cuts -- failed to boost sentiment.

Microsoft and Facebook-parent Meta reported expectations-beating results Wednesday following the closing bell, but saw their share prices fall.

"Both Microsoft and Meta topped earnings expectations, yet the stocks are being victimized by high expectations, valuation angst, and festering concerns about the timing and scope of returns on their massive AI investment activity," said Briefing.com analyst Patrick O'Hare.

Microsoft shares fell more than five percent Meta shares dropped more than four percent.

"The response to their reports has tempered investor enthusiasm for the reports from Apple and Amazon.com after today's close," he added.

The tech-heavy Nasdaq Composite stock index fell by more than two percent in morning trading, with S&P 500 also down more than one percent.

An increase in US government bond yields also weighed upon equities.

"With the US election just around the corner, many investors are adopting a more cautious stance, sparking speculation of a much-anticipated correction in the S&P 500," said City Index and FOREX.com analyst Fawad Razaqzada.

The uncertainty of whether Kamala Harris or Donald Trump will emerge victorious in Tuesday's election buoyed safe haven gold, which touched a fresh high of $2,790.10 an ounce on Thursday.

In Europe, both Frankfurt and Paris ended the day lower around one percent after official data showed the eurozone's annual inflation rebounded more than expected in October due to rising food costs.

Shares in French bank Societe Generale jumped over 11 percent after it reported better-than-expected results.

Meanwhile its rival BNP Paribas saw its shares slump nearly five percent after results fell short of expectations.

London shed 0.6 percent after the new centre-left government unveiled major tax hikes, mainly targeted at businesses, in its maiden budget.

"This was one of the largest increases in tax, spending and borrowing in the UK’s budget history", said Kathleen Brooks, research director at traders XTB.

"For a government that planned to boost growth, they have fallen spectacularly at the first hurdle," she added.

Tokyo fell by half a percent, weighed down by a stronger yen and a drop in stocks linked to the semiconductor industry, which also dipped on Wall Street.

The Bank of Japan decided to leave its main interest rate unchanged, saying in an outlook report that there were "high uncertainties surrounding Japan's economic activities and prices".

Mainland Chinese markets, however, made healthy gains following a forecast-beating manufacturing report -- in a piece of rare good news for leaders struggling to boost activity in the world's second-largest economy.

Oil prices continued their rebound, fuelled by good news on demand from the United States, as well as by press reports that OPEC countries are considering postponing an increase in crude supply.

- Key figures around 1630 GMT -

New York - Dow: DOWN 0.7 percent at 41,861.31 points

New York - S&P 500: DOWN 1.4 percent at 5,731.99

New York - Nasdaq Composite: DOWN 2.3 percent at 18,181.12

London - FTSE 100: DOWN 0.6 percent at 8,110.10 (close)

Paris - CAC 40: DOWN 1.1 percent at 7,350.37 (close)

Frankfurt - DAX: DOWN 0.9 percent at 19,077.54 (close)

Tokyo - Nikkei 225: DOWN 0.5 percent at 39,081.25 (close)

Hong Kong - Hang Seng Index: DOWN 0.3 percent at 20,317.33 (close)

Shanghai - Composite: UP 0.4 percent at 3,279.82 (close)

Euro/dollar: DOWN at $1.0860 from $1.0861 on Wednesday

Pound/dollar: DOWN at $1.2872 from $1.2969

Dollar/yen: DOWN at 152.41 yen from 153.35 yen

Euro/pound: UP at 84.36 from 83.75 pence

Brent North Sea Crude: UP 0.7 percent at $72.67 per barrel

West Texas Intermediate: UP 0.8 percent at $69.15 per barrel

burs-rl/cw

F.Müller--BTB