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US markets tepid with chips down on Intel stock as FTSE finishes in the red

FTSE  The Intel Corporation, INTC, on the New York Stock Exchange (NYSE) is seen on a screen, viewing the stock price for the technology company.
FTSE and Wall Street struggled as Intel's bleak outlook sparked jitters among tech traders. Photo: PA

The FTSE 100 and European stocks struggled for gains this Friday as traders digested the surprises as corporate earnings rolled in.

The FTSE 100 (^FTSE) lost 0.12% to close at 7,752 points, while the CAC 40 (^FCHI) in Paris lost 0.17% to 7,083 points. In Germany, the DAX (^GDAXI) close flat at 15,120.

Across the pond, stocks were mixed after Intel's (INTC) bleak outlook dragged chipmakers lower, though data showing easing inflation spurred hopes of a policy shift from the Federal Reserve, helping limit losses.

The Dow Jones (^DJI) was flat at 33,948 points. The S&P 500 (^GSPC) was also muted at 4,063 points and the tech-heavy NASDAQ (^IXIC) rose 0.45% to 11,564.

Intel reported a quarterly earnings miss after the close Thursday, adjusted earnings per share coming in at $0.10 against the $0.19 expected by the Street. Revenue totalled $14.04 billion, below estimates for $14.5 billion.

In the first quarter, Intel expects revenues to come in between $10.5-$11.5 billion, with losses totalling $0.80 per share. In delivering these results, CEO Pat Gelsinger cited "economic and market headwinds," adding the company, "will continue to navigate the short-term challenges while striving to meet our long-term commitments."

In London, retailer Sainsbury (SBRY.L) was the top riser of the session, climbing 4.55%, followed by oil giants BP (BP.L) and Shell (SHEL.L), both above 2%.

H&M (HM-B.ST) shares were down 4.45% after it announced a slump in earnings due to its exit from Russia, as well as costs related to a restructuring plan and higher garment prices.

London's blue chip struggled after Jeremy Hunt outlined his ideas to boost Britain's economic growth.

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In his speech in central London, Hunt outlined the opportunities in what he called "the growth sectors which will define this century" but dashed any hopes of lowering taxes anytime soon by saying that the “best tax cut right now is a cut in inflation”.

He also pledged to build on "the freedoms which Brexit provides" and said government has a plan to use "British genius and British hard work" to boost economic growth and make the country "the world's next Silicon Valley".

He added the UK is "poised to play a leading role in Europe and across the world in the growth sectors which will define this century".

Speaking at Bloomberg's European headquarters in London, Hunt made “the case for optimism”, blaming EU red tape for stifling British investment.

Meanwhile, Brent crude (BZ=F) rose and was trading at around $88/barrel, on expectations that global demand will strengthen as top oil importer China reopens its economy.

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In Asia, Tokyo’s Nikkei 225 (^N225) closed flat at 27,382 points, while the Hang Seng (^HSI) in Hong Kong gained 0.39% to 22,655. The Shanghai Composite (000001.SS) remains closed for holidays.

Watch: Stock indices down following core PCE inflation data, Microsoft and Intel move lower

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