European shares slide on Fed rate cut worries, tech valuations

European shares fell to a one-week low on Monday, tracking a broad risk-off mood across global markets, sparked by worries about an overvalued tech sector and diminishing prospects of an imminent interest rate cut from the U.S. Federal Reserve.

The pan-European STOXX 600 dropped 1.1% to 565.4 points by 0809 GMT, its lowest since November 7. Major regional bourses such as Germany and France were also down over 1.2% each.

European banking stocks were the biggest drags on the index, down over 2% each.


Investor sentiment globally has been fragile, with expectations high for Nvidia to deliver standout results on Wednesday at a time when worries of an AI bubble have intensified.

In Europe, AI equipment makers including Siemens Energy lost 3% and Schneider Electric fell 2%, while ABB's shares dropped 4% after the company reaffirmed its top-line growth forecasts, disappointing investors.

Traders are also cautious ahead of the long-delayed U.S. jobs report due on Thursday.

While private surveys have pointed to a softening labour market, hawkish remarks from most Fed policymakers have dampened expectations of an interest rate cut in December.

In a bright spot, Swiss drugmaker Roche Holding surged nearly 6% after reporting late stage trial results for its breast cancer pill giredestrant.

(Reporting by Anastasiia Kozlova in Gdansk and Johann M Cherian in Bengaluru; Editing by Mrigank Dhaniwala)