European equities edge lower in cautious open following Fed-driven gains

European shares dipped slightly at the open on Friday, returning a portion of the gains from Thursday's recovery after the Federal Reserve's decision. The declines were moderate and spread evenly:

• Eurostoxx fell 0.2%
• Germany DAX fell 0.4%
• France CAC 40 fell 0.4%
• UK FTSE fell 0.3%
• Spain IBEX fell 0.4%
• Italy FTSE MIB fell 0.3%

The open appeared to reflect profit-taking and consolidation rather than a renewed risk-off mood. Thursday had seen strong gains for European equities, supported by lower oil prices and declining bond yields that allowed markets to absorb the Fed's rate hike.

No major corporate news from Europe was driving trade on Friday. The focus instead was on the Bank of Japan, which increased its policy rate by 25 bps to 1.25%, the highest in 31 years. The decision came on a 7-2 vote, with two dovish dissenters softening the tone, which helped keep USD/JPY around 157 instead of triggering a broader risk-off move.

Oil prices also provided some underlying support for markets. Brent crude fell nearly 2% to $102.80, declining for a third consecutive session as worries about Saudi supply disruptions faded.

Adding to the picture, the broader tone from Wall Street stayed positive after Thursday's technology-driven rally. S&P 500 futures gained 0.3% and Nasdaq futures rose 0.7% on the day.

Overall, the European open was cautious and slightly weaker, not a full risk-off move.