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Tech stocks plunge further but London market hits record high / Photo: Jung Yeon-je - AFP/File
Tech stocks plunge further but London market hits record high
Global stock markets largely retreated Wednesday, with South Korea's index suffering one of its steepest plunges as investors further unwound bets on the AI boom.
But London's benchmark FTSE 100, which does not feature major technology companies, managed a record-high as surging oil prices boosted energy majors Shell and BP and thanks to some positive company earnings.
London's main index hit 10,951.06 points, beating its previous record of 10,934.94 reached at the end of February, before falling back under 10,900 points around midday.
The dollar was little changed against main rivals awaiting clues on the outlook for US interest rates alongside Wednesday's expected decision from the Federal Reserve to freeze borrowing costs despite high inflation concerns.
"AI jitters are still causing volatility on indices as investors question lofty tech valuations, increased competition and future demand," noted Susannah Streeter, chief investment strategist at Wealth Club.
"Futures markets indicate a downbeat start for the Nasdaq (on Wall Street) while it's been another turbulent ride for South Korea's Kospi."
The South Korean index slumped six percent to extend Tuesday's near-11 percent collapse.
Chipmaker SK hynix shed almost 20 percent, meaning the company has lost more than half its value since hitting a record high just one month ago.
Tokyo's stock market closed down 1.5 percent and Taipei dropped nearly four percent.
"The market is increasingly rewarding companies that expand revenue while maintaining spending discipline, and penalising those whose ambitions have outrun their balance sheets," said Fabien Yip at IG trading group.
Other Asian equity markets managed to close higher, with Hong Kong up two percent as its tech sector -- which suffered a painful first half of the year -- led the way.
Shanghai, Sydney, Singapore, Wellington, Manila and Mumbai were also up.
Elsewhere, world oil prices jumped five percent, rebounding in volatile trading after fresh strikes in the Middle East reignited fears of crude supply disruptions.
US and Saudi forces struck an Iraqi militant alliance Wednesday, as the Middle East war expands beyond its main focus in Iran to involve the Islamic republic's proxies.
The strikes follow a short lull in direct US attacks on targets in Iran, with Tehran's allies in Yemen and beyond becoming increasingly drawn in.
Iran, meanwhile, launched missiles at Jordan, in its first attack in the region since the pause in fighting with the US began.
The strikes revived fears about global oil supplies, already hit hard by Iran's blockade of the Strait of Hormuz and more recently by Houthi threats to Saudi exports.
- Company earnings -
Non-tech companies were also in focus amid the release of mixed second-quarter earnings updates.
Hermes' share price tumbled more than 10 percent on the Paris market after its results showed demand in key market China is not reviving.
However, shares in Gucci parent Kering soared almost 14 percent on the Paris CAC 40, which was down overall in early afternoon trade.
On Frankfurt's rising market, BMW climbed 0.4 percent after a company source told AFP that the premium carmaker is to offer almost half its German staff voluntary redundancy in a bid to cut 8,000 jobs by the end of 2027.
BMW, hit by the transition to electric cars, US tariffs and Chinese competition, employs about 154,000 people worldwide.
- Key figures around 1115 GMT -
London - FTSE 100: UP 0.2 percent at 10,893.19 points
Paris - CAC 40: DOWN 0.5 percent at 8,418.32
Frankfurt - DAX: UP 0.2 percent at 25,509.81
Seoul - Kospi: DOWN 6.0 percent at 5,663.24 (close)
Tokyo - Nikkei 225: DOWN 1.5 percent at 61,434.19 (close)
Hong Kong - Hang Seng Index: UP 2.0 percent at 25,807.92 (close)
Shanghai - Composite: UP 0.4 percent at 3,828.47 (close)
New York - DOW: UP 1.0 percent at 52,747.32 (close)
Brent North Sea Crude: UP 5.2 percent at $88.44 per barrel
West Texas Intermediate: UP 4.9 percent at $83.13 per barrel
Euro/dollar: UP at $1.1388 from $1.1386 on Tuesday
Pound/dollar: UP at $1.3292 from $1.3286
Dollar/yen: DOWN at 163.66 yen from 163.87 yen
Euro/pound: DOWN at 85.67 pence from 85.70 pence
burs-bcp/ajb/gv
(Y.Harris--TAG)
