Semiconductor and technology stocks declined for the second day in a row amid the prospect of worsening trade ties between the U.S. and China. The European Central Bank held its key lending rates steady, citing elevated inflation pressures. China's policymakers concluded their much-delayed Third Plenum with no major announcement.
U.S. major averages extended their rally to the seventh consecutive week as the earnings season gathered momentum. European markets halted a three-day rally amid earnings weakness and a China-led slowdown. Chinese stocks were under pressure after weak second-quarter GDP growth and retail sales highlighted weakening consumer demand.