Monday, 17 June 2024

Tech sector pushes European stocks lower amid weak earnings


European stocks fell on Wednesday as weak results from US software giant Microsoft affected the broader technology sector, while signs of improving economic prospects in the euro zone fueled fears of further rate hikes.

According to “Reuters”, the European Stoxx 600 index fell 0.3 percent, recording a decline for the second day, and the technology and communications sectors were the most declining.

Microsoft shares fell 1.6 percent in pre-Wall Street trading after the company warned that it may not meet cloud services earnings expectations in the current quarter.

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Economists at Deutsche Bank no longer expect a recession in the eurozone in 2023 and have also lowered inflation expectations.

German Leopard tank maker Rheinmetall rose 1.9 percent to a record high after media reports that Berlin was ready to send tanks to Ukraine.

British stocks were supported by a 10.6 percent jump in EasyJet, after it was expected to exceed current market expectations for 2023 and achieve profits for the full year.

BNP Paribas shares plunged 1.4 percent after German authorities searched the offices of the French bank in Frankfurt as part of investigations into a multi-billion-euro tax fraud scheme, German daily Handelsblatt reported.