Overview

• Europe’s Stoxx 600 fell 0.4% Thursday after a record and edged lower again Friday, with caution heightened by France’s leadership uncertainty.
• HSBC shares dropped 5.4% after the bank said it intends to buy minority holdings in Hang Seng Bank in a deal valued at about $13.6 billion.
• Ferrari posted its worst one-day decline and closed at the lowest since April after long-term targets disappointed, while autos weakened as Michelin warned of lower third-quarter volumes.
• European defense and mining stocks underperformed after Israel approved a first step in a Gaza peace plan and following China’s tighter rare-earth export rules.
• Asia traded mixed: Japan, China and Hong Kong fell after a Wall Street pause tied to U.S. shutdown worries, while South Korea’s Kospi hit a record as Samsung and SK Hynix rallied on AI-related funding and partnerships.