European Stocks Slip Amid Market Correction Fears

European stocks opened lower on Thursday, driven by declines in banking shares, as investor concerns about a potential market correction unsettled the markets. This followed a night where Asian stocks rose on AI enthusiasm, and Wall Street reached record highs propelled by gains in tech stocks despite a U.S. government shutdown leaving key economic data unavailable.

The global market apprehension was amplified by political instability in Japan and France, contributing to the demand for safe-haven assets like gold, which rose above $4,000 for the first time ever. The British FTSE 100 and the pan-European STOXX 600 both slipped 0.3% as losses at HSBC and Lloyds were only partially offset by gains in mining and tech sectors.

JPMorgan Chase CEO Jamie Dimon further fueled caution among investors by warning of a significant U.S. stock market correction in the next six months to two years, citing increasing geopolitical tensions and government spending as key factors. Meanwhile, the dollar saw minor gains but remains down for the year overall, with the French government's political maneuvers helping to stabilize French bond yields, and the IMF forecasting a global growth slowdown.

(With inputs from agencies.)