Equities Pause After Turbulent Week as Global Flows Shift – Europe Market Wrap
US equities steadied on Friday after a volatile stretch that has left the S&P 500 on track for its first consecutive weekly decline since June, as investors continued to tread carefully. Gold briefly pushed above $4,950 an ounce before paring gains.
Futures on the S&P 500 were little changed, with the index down about 0.4% for the week. Intel slid 13% in premarket trading after warning that ongoing manufacturing setbacks were weighing on its outlook. The dollar was headed for its weakest week in seven months, while emerging-market stocks and currencies extended their strong start to the year.
Investors are increasingly shifting capital away from policy-driven turbulence in the US, a dynamic underscored this week by President Donald Trump’s renewed push to tighten American control over Greenland. While confidence in the longer-term outlook for US equities remains intact, many traders are diversifying toward markets perceived as offering greater stability and clearer catalysts.
US Treasury yields stayed elevated, with the 10-year hovering near its highest level since September. Gold erased intraday gains but was still on course for its strongest weekly performance since the early days of the pandemic.
In Europe, attention turned to the Amsterdam listing of armored vehicle and munitions maker CSG, whose shares jumped 28% on debut. The offering marked the largest initial public listing ever for a pure-play defense company, underscoring growing investor appetite for the sector.
Capital flows this year reflect that shift. Europe- and Japan-focused funds have drawn the bulk of developed-market inflows, while US equities have attracted just $770 million of the roughly $50 billion allocated so far in 2026, according to data compiled by Bank of America using EPFR figures.
In Asia, the Bank of Japan held its benchmark interest rate steady while upgrading its inflation forecasts. Governor Kazuo Ueda signaled that price pressures may ease below 2% in the near term, but he stopped short of ruling out an earlier-than-expected rate increase.
