FX.co ★ European Stocks Fall as Tech Shares Sink

European equities declined on Thursday, with the STOXX 50 down 0.7% and the STOXX 600 off 0.3%, mirroring losses in US and Asian markets amid a global sell-off in technology shares. Semiconductor stocks led the downturn on mounting concerns over stretched AI-related valuations, while persistently high US inflation, the prospect of prolonged elevated interest rates, and firmer oil prices further dampened risk appetite. Investors also remained focused on a new wave of corporate earnings.

ASML Holding slumped 6.6%, while Infineon and STMicroelectronics fell 9.2% and 7.3%, respectively, ranking among the worst performers on the STOXX 600. Basic resources and industrial goods names were also under pressure: Siemens lost 2.7%, Schneider Electric retreated 5.1%, ABB slid 4.6%, and Siemens Energy sank 7.7%. By contrast, telecoms and household goods stocks gained ground. Ericsson topped the STOXX 600, jumping nearly 10% after posting a return to sales growth in the third quarter and earnings that beat expectations. Pernod Ricard rose 3.4% after reporting a smaller-than-anticipated decline in quarterly sales.