European stocks are poised to edge lower on Friday, extending recent losses, as investors shift their focus to the results of the European Banking Authority tests scheduled to be released later in the day. The new stress tests that are designed to improve confidence in the financial sector may show that around 10 banks have insufficient capital to withstand big shocks like a possible Greek debt default.
The major Asian markets are declining, albeit modestly, after Standard & Poor's Ratings Services joined Moody's Investors Service in warning the United States may lose its top credit rating if it fails to raise the debt ceiling. Commodities are seen extending losses following Thursday's sell-off, while the dollar steadied in Asian trading on Friday after Fed chairman Bernanke suggested that no additional support is forthcoming.
In corporate news, Germany's kitchen manufacturer Alno said it received shareholder approval to relocate its headquarters from D'sseldorf back to Pfullendorf.
Biofrontera AG said it has extended the ongoing exchange offer for its convertible bond 2005/2012 with a new options bond until July 20.
Analog integrated circuits manufacturer Austriamicrosystems AG said it has completed the acquisition of Texas Advanced Optoelectronic Solutions for about $320 million.
AerCap Holdings N.V., a Dutch company specializing in leasing aircraft, said it signed new lease agreements for 16 aircraft in the second quarter.
Mining giant BHP Billiton announced that it has agreed to buy U.S. oil and natural gas producer Petrohawk Energy Corp. for $38.75 per share in an all-cash deal of $12.1 billion.
Novartis' eye drug Lucentis was not cost-effective for the treatment of diabetic macular oedema, the U.K.'s health-cost watchdog National Institute for Health and Clinical Excellence said in a statement.
Zurich Financial Services Group announced the signing of definitive agreements with Banco Santander SA to enter into a long-term alliance in Latin America.
European stocks fell on Thursday, after Moody's Investment Service put the U.S. under review for a credit rating downgrade and Italy saw borrowing costs rise in a closely watched bond sale, rekindling worries over possible contagion from the euro-zone debt crisis.
The Euro Stoxx 50 index of eurozone bluechip stocks dropped 0.7 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, closed down 0.6 percent. Around Europe, the German DAX lost 0.7 percent, France's CAC 40 slid 1.1 percent and the U.K.'s FTSE 100 lost a percent.
U.S. stocks finished lower overnight, as continued uncertainty about whether Democrats and Republicans can reach an agreement on raising the debt limit and comments by Fed chairman Bernanke about economic stimulus outweighed positive data on retail sales and weekly jobless claims. The Dow ended down 0.4 percent, the Nasdaq fell 1.2 percent and the S&P 500 slid 0.7 percent.
"The situation is more complex. Inflation is higher...We are uncertain about the near-term developments in the economy...We are not prepared at this point to take further action." Bernanke told the Senate Banking Committee on Thursday during a question and answer session. Bernanke was optimistic that the U.S. economy would turn around after a dismal first half of the year.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.