European and African equity markets opened Friday with a cautious tone, as investors balanced softer global risk appetite against pockets of regional resilience. Early trading reflected uncertainty around growth prospects, central-bank expectations, and the direction of commodities, with price action diverging between developed European bourses and Africa’s resource-linked markets.
European markets open cautiously lower
Across Europe, the opening bell saw broad indices start the session under light pressure. The STOXX Europe 600 edged lower in early trade as technology and consumer discretionary stocks lagged, while financials provided limited support. London’s FTSE 100 opened near flat but quickly slipped into modest losses, weighed by weakness in growth-oriented names and profit-taking after a stronger start to the week. Paris and Frankfurt followed a similar pattern, with exporters subdued by currency moves and investors trimming exposure ahead of upcoming macro releases.
Market participants pointed to three near-term drivers shaping Europe’s open: expectations around the next phase of monetary policy, mixed corporate earnings updates, and spillovers from overnight trading in Asia. Volumes were relatively light in the first hour, a sign that many desks remain positioned defensively while awaiting clearer signals from inflation data and central-bank commentary. Sector rotation was evident, with selective interest in banks and energy offset by selling in technology and retail.
African markets show regional divergence
In Africa, the opening picture was more fragmented. South Africa’s Johannesburg Stock Exchange began the session with modest gains in its broader market gauges, supported by early buying in mining and financial stocks as firmer commodity prices underpinned resource names. Domestic banks also attracted attention following incremental upgrades to earnings expectations.
Elsewhere on the continent, openings were mixed. North and East African exchanges started the day with limited momentum, reflecting cautious foreign flows and currency sensitivity. West African markets traded unevenly, with selective strength in consumer names offset by softness in telecoms and energy. Liquidity remained thin in several centres, amplifying small price moves and reinforcing the importance of local catalysts over broad regional trends.
What’s driving sentiment at the open
The contrasting starts highlight the different forces at work. European equities are currently more exposed to global growth expectations and valuation resets in technology, while African markets continue to respond primarily to commodities, domestic fiscal conditions, and capital-flow dynamics. Elevated metals prices lent support to Southern African resource stocks, whereas tighter financial conditions and currency volatility weighed on parts of East and West Africa.
From a portfolio perspective, investors appear focused on selective positioning rather than broad risk-on exposure. Defensive allocations and value pockets attracted interest, while higher-beta sectors struggled to gain traction. The early tone suggests that cross-asset correlations—particularly between currencies, commodities, and equities—will remain central to intraday direction.
Implications for the trading day ahead
As the sessions progress, attention will turn to incoming economic data, comments from policymakers, and the opening of U.S. markets for further direction. For Europe, confirmation of inflation trends and guidance on rates will be key to restoring confidence. In Africa, commodity price stability and local policy signals are likely to dictate whether early gains can be sustained.
Overall, Friday’s opening underscores a market environment defined by caution and selectivity, with Europe navigating valuation pressures and Africa balancing resource support against tighter global financial conditions.
Newshub Editorial in Europe and Africa – 6 February 2026
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