European stocks look set to open notably lower on Friday, tracking declining U.S. stock futures suggesting a more than 200-point drop for the Dow Jones Industrial Average as several prominent companies posted mixed earnings results after the U.S. closing bell.
Google parent Alphabet missed analysts’ quarterly revenue estimates for the first time in at least two years, while Intel reported better-than-expected third-quarter earnings and full-year guidance.
Amazon’s sales for the three months ending September and its sales forecast for the upcoming fourth quarter both came in below Wall Street estimates.
Investors remain concerned that U.S. earnings growth may be peaking amid rising costs due to U.S. import tariffs.
Asian stock markets gave up early gains to turn broadly lower despite strong gains on Wall Street overnight.
Base metal prices fell on the Shanghai Futures Exchange and the dollar index held flat after hitting a two-month high on Thursday, while gold remained on track to rise for the fourth straight week amid rising risk aversion.
Oil prices eased and remained on track for a third weekly loss after Saudi Arabia’s OPEC governor said the market could be heading into oversupply in the fourth quarter.
In economic releases, consumer sentiment data from Germany and France as well as U.S. reports on third-quarter GDP and consumer sentiment are due later in the session.
U.S. stocks posted solid gains overnight to wipe out part of the market’s plunge the previous day, as investors cheered encouraging durable goods orders and pending home sales data as well as strong earnings results from major companies including Microsoft, Twitter, Visa and Comcast.
The Dow rallied 1.6 percent, the tech-heavy Nasdaq Composite jumped as much as 3 percent and the S&P 500 surged 1.9 percent.
European markets closed higher on Thursday as the European Central Bank left its interest rates as well as its forward guidance unchanged for a third consecutive policy session and reaffirmed that asset purchases would end in December.
The pan-European Stoxx Europe 600 index gained half percent. The German DAX climbed 1 percent, France’s CAC 40 index rallied 1.6 percent and the U.K.’s FTSE 100 rose 0.6 percent.