Last updated: January 3, 2024 at 8:22 a.m. ET
First published: January 3, 2024 at 7:45 a.m. ET
European stock markets weakened on Wednesday following Wall Street’s sell-off in the new year, with the region’s technology sectors under notable pressure after an Apple downgrade sent the sector down. the decline.
The DAX DX:DAX index in Frankfurt fell 1% and the FTSE 100 UK:UKX index in London marked its 40th anniversary with a drop of 0.8% as mining companies faced concerns over the decline in economic growth.
…
European stock markets weakened on Wednesday following Wall Street’s sell-off in the new year, with the region’s technology sectors under notable pressure after an Apple downgrade sent the sector down. the decline.
The DAX DX:DAX index in Frankfurt fell 1% and the FTSE 100 UK:UKX index in London marked its 40th anniversary with a drop of 0.8% as mining companies faced concerns over the decline in economic growth.
The CAC 40 FR:PX1 in Paris loses 1.4% under the influence of railway manufacturer Alstom
ALO
fell 7% in response to Barclays reducing its price target for the train maker from €8.50 to €8. Luxury groups are also under pressure, with LVMH
MC
and Kering
KER
down around 3% after UBS analysts warned of a “weak earnings season” for the sector.
Amsterdam’s AEX index NL:AEX fell 0.6% as chip equipment maker ASML
ASML
and ASM International
ASM
fell by 2% and almost 3% respectively, in sympathy with a decline in the sector in Asia, and previously in the United States.
Separately, Franco-Italian chipmaker STMicroelectronics
STMPA
is down 2.4% and its German counterpart Infineon Technologies
IFX
lost almost 3%.
The sector, which has performed well in recent times – with ASML up 16.5% over the past three months and ASM International up 82% over the past 12 months – has been deemed ripe for some taking of profits. And it was triggered by an Apple downgrade
AAPL
by Barclays on Tuesday from neutral to underweight, in a rating that triggered a sell-off in technology products.
ASML had already found its shares reeling on Tuesday following a Bloomberg report that the United States had pressured the company to cancel shipments of some of its machines to China.
“Tech stocks, with their high valuations, are sensitive to even the slightest economic swing or rise in yields, and it’s not like everyone is participating in this narrow market top driven by industry hype. ‘AI,’ said Stephen Innes, managing partner at SPI Asset Management. .
Elsewhere, shares in Airbus
AIR
fell 2% after the planemaker announced it was in talks to buy Atos.
ATO
cybersecurity unit that values the company at up to 1.8 billion euros ($1.97 billion), including debt.
One of the most successful models was the British C4X Discovery minnow.
C4XD
,
whose shares soared nearly 50% after the biotech group received an $11 million milestone payment from AstraZeneca
AZN
.
Last updated: January 3, 2024 at 8:22 a.m. ET
First published: January 3, 2024 at 7:45 a.m. ET
European stock markets weakened on Wednesday following Wall Street’s sell-off in the new year, with the region’s technology sectors under notable pressure after an Apple downgrade sent the sector down. the decline.
The DAX DX:DAX index in Frankfurt fell 1% and the FTSE 100 UK:UKX index in London marked its 40th anniversary with a drop of 0.8% as mining companies faced concerns over the decline in economic growth.
…
European stock markets weakened on Wednesday following Wall Street’s sell-off in the new year, with the region’s technology sectors under notable pressure after an Apple downgrade sent the sector down. the decline.
The DAX DX:DAX index in Frankfurt fell 1% and the FTSE 100 UK:UKX index in London marked its 40th anniversary with a drop of 0.8% as mining companies faced concerns over the decline in economic growth.
The CAC 40 FR:PX1 in Paris loses 1.4% under the influence of railway manufacturer Alstom
ALO
fell 7% in response to Barclays reducing its price target for the train maker from €8.50 to €8. Luxury groups are also under pressure, with LVMH
MC
and Kering
KER
down around 3% after UBS analysts warned of a “weak earnings season” for the sector.
Amsterdam’s AEX index NL:AEX fell 0.6% as chip equipment maker ASML
ASML
and ASM International
ASM
fell by 2% and almost 3% respectively, in sympathy with a decline in the sector in Asia, and previously in the United States.
Separately, Franco-Italian chipmaker STMicroelectronics
STMPA
is down 2.4% and its German counterpart Infineon Technologies
IFX
lost almost 3%.
The sector, which has performed well in recent times – with ASML up 16.5% over the past three months and ASM International up 82% over the past 12 months – has been deemed ripe for some taking of profits. And it was triggered by an Apple downgrade
AAPL
by Barclays on Tuesday from neutral to underweight, in a rating that triggered a sell-off in technology products.
ASML had already found its shares reeling on Tuesday following a Bloomberg report that the United States had pressured the company to cancel shipments of some of its machines to China.
“Tech stocks, with their high valuations, are sensitive to even the slightest economic swing or rise in yields, and it’s not like everyone is participating in this narrow market top driven by industry hype. ‘AI,’ said Stephen Innes, managing partner at SPI Asset Management. .
Elsewhere, shares in Airbus
AIR
fell 2% after the planemaker announced it was in talks to buy Atos.
ATO
cybersecurity unit that values the company at up to 1.8 billion euros ($1.97 billion), including debt.
One of the most successful models was the British C4X Discovery minnow.
C4XD
,
whose shares soared nearly 50% after the biotech group received an $11 million milestone payment from AstraZeneca
AZN
.