Nasdaq leads stock declines as dollar approaches weekly loss
European shares rose despite U.S. technology-sector weakness, while G7 government bonds were poised for their best week since late May.
European shares rebound as dollar heads for weekly decline
The STOXX 600 gained 0.6%, while the dollar was on course to end a three-week winning streak as Treasury yields declined.
European equities advanced on October 16, recovering after a technology-led selloff, while the dollar weakened. At 10:55 a.m. GMT, the STOXX 600 had risen 0.6% and the MSCI World Equity Index had gained 0.4%, though the global benchmark remained headed for a weekly decline.
Germany's DAX climbed around 1%, France's CAC 40 added 0.5% and Britain's FTSE 100 gained less than 0.1%. S&P 500 futures rose 0.2%, but Nasdaq futures remained lower as investors worried about credit risks tied to artificial intelligence, including indebted data-center operators such as CoreWeave.
Concerns about higher borrowing costs and debt-financed AI expansion had weighed on technology and semiconductor shares. Stronger-than-expected U.S. inflation figures on October 14 prompted traders to increase wagers on additional rate increases, even as investors bought Treasuries and other government debt.
The dollar dropped 0.4%, taking its index to 101.65 as lower Treasury yields diminished its appeal. It was heading for its first weekly fall after three consecutive weekly gains. The euro advanced 0.4% to $1.1257, recovering from a recent 17-month low.
European government debt yields moved slightly higher, with Germany's 10-year yield at 3.4355%, but remained down for the week. Government bonds across the G7 were heading toward their best weekly performance since late May as concerns about AI companies' finances encouraged demand for safety.
Elsewhere, Indonesian shares recorded their steepest fall since 1998 after MSCI said the market no longer qualified for emerging-market status and planned removals from major indexes. Turkey's main equity benchmark lost more than 3% after MSCI suspended certain adjustments to its Turkish stock indexes.