European stock markets opened lower on Friday (November 21st), as volatility in US technology stocks returned to the Atlantic.

Shortly after the opening bell, the pan-European Stoxx 600 index fell 0.75%, with nearly all sectors and major bourses in negative territory.

Global stocks have fluctuated sharply this week, as concerns about AI valuations have plagued equity markets. They eased slightly from a four-day sell-off following Nvidia's earnings release on Wednesday, but their gains were quickly reversed during Thursday's trading session as New York-listed stocks continued to decline.

On Friday, Asian chip stocks took a hit, while US stock index futures rose.

Looking at individual stocks in Europe, Dutch semiconductor company BE Semiconductor and chip equipment manufacturer ASMI fell between 4% and 5% in early trading. ASML, another key chipmaking equipment manufacturer, fell 4.5%, following the decline in the broader technology sector.

Headlines surrounding a potential peace deal for Ukraine have also impacted sentiment in Europe in recent days, with reports suggesting that Washington and Moscow have been secretly brokering a peace plan to end the war—potentially forcing Ukrainian President Volodymyr Zelenskyy to make some difficult choices.

Reuters news agency reported on Thursday that the peace plan would require Kyiv to cede the entire Donbas region to Moscow and reduce its military might.

Zelenskyy, who had previously dismissed suggestions that his country would cede territory to end the conflict, said on Telegram on Thursday evening that he had received a peace plan proposal from the US delegation earlier that day.

"Since the first days of the war, we have upheld one very simple position: Ukraine needs peace. Real peace… on terms that respect our independence, our sovereignty, and the dignity of the Ukrainian people," he said. "I have outlined our main principles. And we agreed that our teams will work on these proposals to make sure everything is right."

European defense stocks saw a sell-off on Friday morning, with the Stoxx Europe Aerospace and Defense index last trading 2.8% lower. Germany's Renk was down 9% as of 8:30 a.m. in London (3:30 a.m. ET), while Rheinmetall and Hensoldt were down more than 5% each.

Meanwhile, investors around the world are also digesting the long-delayed U.S. non-farm payrolls report on Thursday, hoping for some clues about the direction of American monetary policy. Market expectations for a Federal Reserve interest rate cut in December have fallen sharply in recent weeks, with the jobs report—the first since the U.S. government shutdown—painting a mixed picture of the American labor market.

Back in Europe, investors will be looking forward to a series of economic data, including UK retail sales, Germany's HCOB manufacturing PMI, and S&P Global's manufacturing data for the UK.

British defense engineering company Babcock International will report its quarterly earnings on Friday. (alg)

Source: CNBC.com