European Stocks Lose Momentum, Dragged Down by Technology Sector
European stocks lost momentum in the second half of trading and closed mixed on Thursday (February 26th), after a mid-session rally faded. A number of solid performance reports helped stem the decline, but pressure on the technology sector returned after the market digested Nvidia's earnings report.
The EURO STOXX 50 index closed down 0.2% to 6,162, while the pan-European STOXX 600 index held around 633, holding near its record high reached in the previous session. This confirms the market remains strong, but investors are becoming more selective amidst the busy earnings season.
On the corporate front, Argenx fell more than 8% despite beating fourth-quarter earnings estimates, indicating the market remains harsh on stocks deemed overpriced or overly high expectations. Deutsche Telekom fell around 2% despite earnings beating estimates and the company announcing a new buyback program. In the technology sector, ASML fell 4.5%, in line with weakening sentiment after the market deemed Nvidia's report insufficient to assuage concerns that AI-related capital spending could slow.
Conversely, several defensive stocks and the energy sector provided support. Engie surged around 7% following its planned acquisition of UK Power Networks, while ENI rose 2.5% thanks to strong earnings performance. Schneider Electric rallied 3% after releasing its financial results, and insurance stocks also supported, with Allianz rising 1% and AXA gaining 1.6% amid a series of major company reports.
Source: Newsmaker.id
