Global stock markets struggled for momentum Friday as doubts built over whether the US Federal Reserve would cut interest rates next month and amid persistent fears of a tech bubble.
Oil prices rallied meanwhile as analysts cited risks to Russian oil flows due to Ukrainian strikes and US sanctions.
On Wall Street, major US indices mostly pulled back, although the tech-heavy Nasdaq edged up after heavy selling on Thursday.
Major European and Asian indices finished in the red, with London losing 1.1 percent after UK government bonds and the pound slid following reports that finance minister Rachel Reeves had scrapped plans to raise income taxes in her budget speech this month.
Analysts said the reports heightened concerns about UK public finances.
Paris and Frankfurt also slipped in the wake of stock losses in Tokyo, Hong Kong and Shanghai.
"After an extraordinary run that began in April, the tech sector has finally started to wobble, with valuations looking overstretched in recent weeks," said Fawad Razaqzada, market analyst for StoneX.
"It wouldn't be surprising if markets stayed a bit jumpy for a while yet, though it's still premature to call the top of this cycle," he added.
'Volatile week'
"It's certainly been a volatile week... with relief over the end of the (US government) shutdown vying with concerns over AI valuations and whether the Fed will cut rates again," said Jim Reid, managing director at Deutsche Bank.
Traders trimmed bets on a December rate cut after several Fed officials voiced concerns about cutting borrowing costs while inflation remained high.
For much of the year, equities have been boosted by optimism that US rates would come down, and the Fed has delivered at its past two meetings.
But comments from Fed chief Jerome Powell last month that a December repeat was not "a foregone conclusion" sowed the seeds of doubt.
Investors also await the release of economic data that had been held up by the US government shutdown, with jobs and inflation numbers the main focus, even though some statistics are expected to be incomplete.
The dimmer outlook for rates compounded worries that the tech sector might be overpriced after an AI-fueled surge that sent markets to record highs this year.
"The tech-sector rout from Wall Street spilled across the globe," on Friday, said Joshua Mahony, chief market analyst at Scope Markets.
Oil prices rallied more than two percent, rebounding days after tumbling on a monthly OPEC report that forecast an oversupply in the third quarter.
The International Energy Agency on Thursday flagged risks to Russian output caused by US sanctions imposed last month, including on the country's two largest producers.
Key figures at around 2205 GMT
New York - Dow: DOWN 0.7 percent at 47,147.48 points (close)
New York - S&P 500: DOWN 0.1 percent at 6,734.11 (close)
New York - Nasdaq Composite: UP 0.1 percent at 22,900.59 (close)
London - FTSE 100: DOWN 1.1 percent at 9,696.47 points (close)
Paris - CAC 40: DOWN 0.8 percent at 8,170.09 (close)
Frankfurt - DAX: DOWN 0.7 percent at 23,876.55 (close)
Tokyo - Nikkei 225: DOWN 1.8 percent at 50,376.53 (close)
Hong Kong - Hang Seng Index: DOWN 1.9 percent at 26,572.46 (close)
Shanghai - Composite: DOWN 1.0 percent at 3,990.49 (close)
Dollar/yen: UP at 154.55 yen from 154.53 yen on Thursday
Euro/dollar: DOWN at $1.1621 from $1.1634
Pound/dollar: DOWN at $1.3171 from $1.3189
Euro/pound: UP at 88.22 pence from 88.21 pence
West Texas Intermediate: UP 2.4 percent at $60.09 per barrel
Brent North Sea Crude: UP 2.2 percent at $64.39 per barrel
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