European stocks fell on Tuesday as the tech sector suffered its biggest drop since late October, reflecting a massive sell off on the Nasdaq. Losses accelerated after US Treasury Secretary Janet Yellenwarned that rates may have to rise to keep the economy from overheating.
The Stoxx Europe 600 index closed 1.4% lower, with almost all sectors in the red. Technology stocks plunged 3.7%, with ASML Holding NV and Infineon Technologies AG among the biggest declines. Ferrari NV has led automakers down after delaying a long-standing profit target due to the pandemic.
Lockdown winners such as HelloFresh SE fell as investors turned to the prospect of an economic reopening after the meal kit maker released results in line with estimates. The German DAX index has been the worst performer among major European benchmarks, with the current 2.5% drop being its worst since late December.
Shares fall after a lukewarm April, which saw the region’s benchmark trade in a range after hitting an all-time high. While stocks initially rose on optimism about aproposed easing travel restrictions in the region, they reversed the gains later, accelerating declines alongside US stocks.
Meanwhile, German remote access software company TeamViewer AGcollapsed despite better-than-expected earnings as plans to ease restrictions weighed on the stock. Online pharmacies Shop Apotheke Europe NV and Zur Rose Group AG also declined.
Pandemic winners drop amid travel plans and drops in income after gains
“We’re at really high levels, and we need more than good wording from companies to go further,” said Guillermo Hernandez Sampere, sales manager at MPPM EK in Eppstein, Germany, in a statement. interview. “He feels as each report elevates directions – at least that limits the perceived drawbacks. “
The old adage “sell in May and go” is something to remember this year, he said.
Europe’s powerful profits fail to move the needle for investors
Danish jeweler Pandora A / S was boosted by aProfits beaten and upgraded tips. Oil majors such as BP Plc and Total SE advanced as oil rose, optimistic that the recovery in economic activity in the United States and Europe will support demand.
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– With the help of Ksenia Galouchko