European shares slip as Mideast tensions linger; tech stocks pause rally

European shares slipped at open on Friday and were on track to end the week marginally lower as uncertainty prevailed over Middle East peace efforts, while technology ‌stocks led ⁠declines, pausing ⁠after a blistering two-month rally.

The pan-European STOXX 600 index edged 0.2% down to 623.10 points by 0713 GMT and was set to log a 0.5% drop for the week.

Brent crude prices were at $95 a barrel and looked set to end the week higher, as chances for a diplomatic resolution between U.S. and Iran ⁠looked slim ‌with both countries trading strikes earlier in the week. The Israel-Lebanon ceasefire also hangs in the balance as ⁠Hezbollah rejected the U.S.-brokered pact.


Technology stocks led declines among sectors with a 2% drop, easing after a strong rally that has helped the shares gain over 33% in the past two months - the most among STOXX 600 sectors.

Tech stocks in Asia and the U.S. showed signs of pausing this week after disappointing results from U.S.-based Broadcom.

European chip ‌stocks such as Infineon and Aixtron lost more than 4% each, while AI equipment makers Legrand and Schneider Electric both slipped about 1%.

Among ⁠UK midcaps, shares of Bodycote slid 11% after the British thermal processing services company said that Apollo Global Management does not intend to make a firm offer for it.

Shares of Raspberry Pi jumped 11.2% after the single-board computing company raised its full-year profit forecast, saying strong AI-related demand was expected to result in adjusted core profit "significantly ahead" of market expectations.