European shares climb broadly as US tech concerns persist

European equity markets made a strong start to the trading day, with the main benchmarks opening higher across the region. Although the regional stocks are performing well, the more tentative tone in US futures indicates that investors remain cautious. The opening levels in Europe are as follows:

• Eurostoxx +0.6%
• Germany DAX +0.3%
• France CAC 40 +1.2%
• UK FTSE 100 +0.8%
• Spain IBEX +1.3%
• Italy FTSE MIB +0.4%

The upbeat start comes as European stocks aim to extend the gains seen in the previous session, with buyers finding some support from the US midterm election results and the ongoing shift away from technology shares.

Across the Atlantic, the mood is considerably less upbeat. Dow futures are ahead by 0.5%, but S&P 500 futures are flat and Nasdaq futures are 0.7% lower so far today. This suggests that the sharp recovery in tech stocks on Wednesday may already be losing momentum.

With concerns about AI spending and the potential impact of the US midterm elections still hanging over the technology sector, Wall Street could once again become a key test for broader risk appetite later in the day.

For the time being, European investors are at least taking advantage of the calmer conditions, even if the divergence from US tech stocks remains something to watch.

As the week draws to a close, the Bank of England policy decision is due later, followed by the weekly US jobless claims data. Then on Friday, the main event of the week will arrive as the US jobs report gives markets some data-driven direction after the midterms.