European shares fall as tech stocks slide, Middle East tensions weigh
European shares declined as technology stocks led losses amid concerns over AI valuations and escalating US-Iran tensions. Rising oil prices added pressure, while stronger earnings expectations lifted healthcare stocks, with Bayer gaining 6% after...
By Anupam Nagar, ETMarkets.com |
Agencies
European markets fall as AI investment concerns, Middle East tensions and rising oil prices unsettle investors, while healthcare stocks gain on Bayer's improved outlook.
European shares fell on Tuesday, with technology stocks leading losses as concerns over the artificial intelligence (AI) trade and escalating tensions in the Middle East dampened investor sentiment, Reuters reported.
The pan-European STOXX 600 index declined more than 0.5% to 645.8 points. Germany's DAX, Spain's IBEX and Italy's FTSE MIB fell around 0.9% each by 0817 GMT.
According to Reuters, investor sentiment weakened after a US official said Washington had carried out strikes on Iran's Qeshm Island in the Strait of Hormuz. The development came a day after Iran signalled openness to peace talks, while US President Donald Trump indicated he could consider holding off on strikes against Tehran until after the midterm elections.
Read more: Chinese yuan set for biggest daily drop in six months after PBOC tightens FX reserves
Oil prices rebounded, adding to market concerns. Brent crude futures rose 1.6% to above $100 a barrel, recovering from a 7% decline in the previous session.
Technology stocks led sectoral losses, falling around 2%. Shares of Aixtron dropped 3.5%, while ASML declined 2.8%. Siemens Energy also shed 2.4%.
Reuters reported that Asian technology stocks had come under pressure earlier in the session as investors reassessed the AI investment theme following disappointing results from major US hyperscalers last week. Concerns that enthusiasm surrounding AI development had pushed valuations in the sector to unsustainable levels also weighed on sentiment.
Read more: South Korean shares slide nearly 3% as tech selloff deepens; won strengthens
Apple's cautious gross margin outlook for the crucial holiday quarter added to the pressure. The iPhone maker warned of rising memory-chip costs, raising concerns about the impact of higher component expenses on profitability.
However, healthcare stocks bucked the broader market weakness, supported by a 6% rally in Bayer. Reuters reported that the German pharmaceutical and agriculture group raised its 2026 profit outlook, citing stronger-than-expected performance in its pharmaceuticals business, lifting sentiment across the sector.
(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)
The pan-European STOXX 600 index declined more than 0.5% to 645.8 points. Germany's DAX, Spain's IBEX and Italy's FTSE MIB fell around 0.9% each by 0817 GMT.
According to Reuters, investor sentiment weakened after a US official said Washington had carried out strikes on Iran's Qeshm Island in the Strait of Hormuz. The development came a day after Iran signalled openness to peace talks, while US President Donald Trump indicated he could consider holding off on strikes against Tehran until after the midterm elections.
Read more: Chinese yuan set for biggest daily drop in six months after PBOC tightens FX reserves
Oil prices rebounded, adding to market concerns. Brent crude futures rose 1.6% to above $100 a barrel, recovering from a 7% decline in the previous session.
Technology stocks led sectoral losses, falling around 2%. Shares of Aixtron dropped 3.5%, while ASML declined 2.8%. Siemens Energy also shed 2.4%.
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Reuters reported that Asian technology stocks had come under pressure earlier in the session as investors reassessed the AI investment theme following disappointing results from major US hyperscalers last week. Concerns that enthusiasm surrounding AI development had pushed valuations in the sector to unsustainable levels also weighed on sentiment.
Read more: South Korean shares slide nearly 3% as tech selloff deepens; won strengthens
Apple's cautious gross margin outlook for the crucial holiday quarter added to the pressure. The iPhone maker warned of rising memory-chip costs, raising concerns about the impact of higher component expenses on profitability.
However, healthcare stocks bucked the broader market weakness, supported by a 6% rally in Bayer. Reuters reported that the German pharmaceutical and agriculture group raised its 2026 profit outlook, citing stronger-than-expected performance in its pharmaceuticals business, lifting sentiment across the sector.
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(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)
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