European stocks get a boost from chip companies after a two-‎day sell-off

European stocks stabilized today, Thursday, after the worst wave of selling in two days since March, as optimism about strong business results offset the impact of fears about the consequences of the US debt ceiling crisis and the global economic slowdown.

According to “Reuters”, the European Stoxx 600 index settled by 0707 GMT, after losing about 2.5 percent in the past two days due to a wave of selling shares of luxury companies and the lack of significant progress in talks to raise the US debt ceiling to avoid debt default. ..

Fitch Ratings put the US on watch for a possible downgrade on Wednesday

Shares of European chipmakers rose on Thursday after Nvidia Inc forecast quarterly revenue that beat Wall Street forecasts by nearly 50 percent.

BE Semiconductor shares jumped 6.5 percent and ASM International jumped 6.3 percent. The broader technology index increased 1.7 percent

The German DAX index declined after data showed that the German economy contracted in the first quarter of 2023 compared to the previous three months, which means entering a recession.