European Stocks Dip as Bank of Japan Raises Rates

European stock markets opened modestly lower on Friday, with the Germany DAX, France CAC 40, and Spain IBEX all slipping 0.4%. The decline follows a strong rebound on Thursday and is characterized as light profit-taking and consolidation rather than a shift toward risk-off sentiment.

Investors are currently digesting a policy rate hike by the Bank of Japan, which raised its rate by 25 basis points to 1.25%, the highest level in 31 years. Market volatility was softened by a 7-2 vote split within the central bank, which helped stabilize the USD/JPY exchange rate around 157.

Broader market support came from constructive signals in U.S. technology futures and a drop in energy costs. Brent crude prices fell nearly 2% to $102.80 as concerns regarding Saudi Arabian supply disruptions eased.