Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

European shares dragged down by tech's worst day since October

Stock MarketsMay 04, 2021 12:29PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt

By Sruthi Shankar and Ambar Warrick

(Reuters) -European shares ended lower on Tuesday, with the technology sector having their worst day since late-October after a sudden drop in big U.S. tech stocks.

The pan-European STOXX 600 index shed 1.4%, with tech stocks losing 3.8% and some analysts attributing the drop to profit taking.

Tech stocks are trading near record highs on a stellar earnings season and broader optimism over an economic recovery.

"It's a combination of a sell-off on the winners of the past months... with the month of May and a 'nervous' positioning," said Angelo Meda, portfolio manager at Banor SIM in Milan.

The tech-heavy Nasdaq slipped more than 2%, from near record-high levels, with highly-valued tech companies bearing the brunt of selling. (N)

In Europe, Germany's bourse shed 2.5%, the most in the region, due to its high composition of tech stocks.

Chipmaker Infineon (OTC:IFNNY) fell 5.9% and was among the top drags on the German index, after CEO Reinhard Ploss said he was expecting supply constraints in the automotive segment to only ease in the second half, with lost volumes likely to be made up in 2022.

Europe's automakers fell 3.2%.

Miners rose 0.2%, and oil and gas stocks fell the least, supported by strong resource prices as investors bet on a strong global rebound after massive vaccination drives in developed countries and unprecedented stimulus.

German meal-kit delivery company HelloFresh fell 6.7% as worries about consumer behaviour, amid easing lockdowns, overshadowed a surge in first-quarter customer base.

Software company Teamviewer, another stay-at-home beneficiary, dropped 12.3% despite reporting quarterly orders and core profit ahead of expectations.

More than half of the STOXX 600 companies have reported so far in what has largely been a positive earnings season, with 73% of them topping profit expectations, as per Refinitiv IBES data.

Jewellery maker Pandora (OTC:PANDY) jumped 6.0% to the top of the STOXX 600 after reporting quarterly operating profit above estimates, fuelled by strong online sales and plans to push for growth in the United States and China.

Norwegian hydrogen firm Nel slumped 15.8% to the bottom of the STOXX 600 after its first quarter results missed expectations.

European shares dragged down by tech's worst day since October
 

Related Articles

Avoid These 3 Overvalued Reddit Stocks
Avoid These 3 Overvalued Reddit Stocks By StockNews - Jun 14, 2021

Rising inflation and market volatility have been motivating investors to target less expensive stocks that have solid growth potential. And despite a recent meme stock rally,...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Stuart McWhirter
Stuart McWhirter May 04, 2021 4:07AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
whoever wrote this article knows nothing about the dynamics of mining equities.
Dave Jones
Dave Jones May 04, 2021 3:46AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
actually mining is based on commodities going ape
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email