Tech Stock Selloff Drags Down European Stocks
European stock markets weakened again for the second consecutive day on Tuesday (July 7), pressured by a decline in technology stocks. This decline followed a sell-off in semiconductor stocks in Asia and the United States.
The Stoxx Europe 600 Index closed down 0.6%, although trading volume remained relatively thin. The technology sector was the main drag, falling 3.6%. This pressure arose after Samsung Electronics' strong earnings failed to convince investors, while on Wall Street, the Nasdaq 100 and the SOX chip index also fell sharply.
In Europe, ASML Holding was one of the technology stocks weighing the most on the index. Other chip-related stocks, such as Infineon Technologies, ASM International, and STMicroelectronics, also fell more than 7%. This indicates that investors are becoming more cautious about technology sector valuations after the previous strong rally.
Despite this, major European indices remain near record highs. Some investors have begun rotating out of technology stocks and into consumer discretionary and energy sectors. Shell was one of the stocks that gained, rising 3.4% after its second-quarter oil and gas trading report showed strong results. Keller Group also jumped 23% after raising its full-year profit forecast.
Looking ahead, the corporate earnings season will be a key driver of European markets. Investors are eager to see whether corporate earnings can support the approximately 9% rally this year. Meanwhile, Siemens Energy fell 8.9% after Barclays cut its recommendation on the stock, while ITV fell 7.3% after JPMorgan downgraded the stock. (arl)
Source: Newsmaker.id
