European Stocks See Limited Movement, Tech Downturn Weighs on Sentiment
European stock markets saw limited movement on Tuesday (July 7th), after previously posting slight declines that left major indices slightly below record levels. The STOXX 50 and STOXX 600 indices were relatively flat as investors remained cautious in assessing market direction.
From a market analyst perspective, the main pressure came from the technology sector. Negative sentiment carried over from the Asian session after Samsung Electronics' strong performance projections led investors to reassess the high valuations of the artificial intelligence (AI)-driven rally. Samsung estimated operating profit for the April-June period to reach 89.4 trillion won, a 19-fold increase compared to the previous year.
European technology stocks also suffered. ASML Holding fell 3.9%, Infineon Technologies fell 3.5%, and STMicroelectronics fell 3.3%. Meanwhile, Siemens Energy plunged 6% after Barclays downgraded the stock to "underweight" from "equal weight."
Despite the weakening technology sector, market pressure was offset by gains in consumer staples, essential goods, and energy stocks. Some of the stocks that supported the gains included Shell (up 2.3%), LVMH (up 1.4%), L'Oreal (up 2.1%), TotalEnergies (up 1.0%), and Hermes (up 1.5%). (asd)
Source: Newsmaker.id
