European Stocks Retreat as Tech-led Declines on Wall Street Drag Market Lower
European Stocks Retreat as Tech-led Declines on Wall Street Drag Market Lower
European stocks took a hit on Tuesday, following the tech-led declines on Wall Street, with Airbus SE leading the slump. The Stoxx 600 Index fell 0.3%, weighed down by technology firms and industrials. Airbus shares tumbled more than 10% after the company lowered its guidance due to persistent supply-chain issues.
Investors are shifting their focus from the technology sector to value stocks as the quarter comes to a close. In Europe, all eyes are on France’s main political parties as they prepare for a debate ahead of legislative elections on Sunday.
“As we approach the quarter-end, global investors are rebalancing their portfolio, selling assets that have performed well recently and buying names that have lagged,” said Hideyuki Ishiguro, chief strategist at Nomura Asset Management Co.
The dollar remained steady and US Treasuries saw small movements. The retreat in technology shares is seen as a sentiment-driven reversal rather than a macroeconomic issue, according to Danske Bank analysts.
Airbus announced that it now expects to deliver 770 aircraft in 2024, down from the previous goal of 800 units. Merck KGaA also faced a setback, with shares falling 11% after discontinuing the development of a promising drug for head and neck cancer.
Eurofins Scientific SE, on the other hand, saw a rebound in its shares after rejecting allegations that caused a significant decline in its stock price.
In the currency market, the yen is at risk of sliding to levels last seen in 1986, with bearish traders unfazed by potential government intervention. Oil prices held steady amid rising geopolitical tensions, while gold edged lower and Bitcoin rebounded after a decline.
Key events to watch this week include US consumer confidence data, new home sales, China industrial profits, Eurozone economic confidence, US durable goods orders, GDP figures, and Nike earnings.
Overall, the market remains volatile as investors navigate through changing trends and geopolitical uncertainties.