European stocks tumble, led by tech stocks and renewable energy after Wall Street collapse


European stocks fell sharply on Friday, led by technology, which followed a late-hour sell-off in US markets. Profit warnings in the field of renewable energies caused the shares of two Siemens subsidiaries to collapse.

The Stoxx Europe 600 Index SXXP,
down almost 2% to 473.75 after rising 0.5% on Thursday. The index is facing a nearly 1% drop this week. The German DAX DAX,
fell 2.2%, with the CAC 40 PX1,
by 2% and the FTSE 100 index UKX,
1.3% lower.

US stock indexes gave up an early rebound and turned lower in the final hour of trading on Thursday, a repeat of Wednesday’s volatile session. The worst losses were seen for the Nasdaq Composite COMP,
This dropped 1.3%, pushing it further into correction territory.

Equities struggled as bonds sold off earlier in the year as investors eye tightening policy from the Federal Reserve. The yield of the 10-year TMUBMUSD10Y,
fell 5 basis points to 1.75%, while the yield on German 10-year Bund TMBMKDE-10Y,
The index, which slipped back into positive territory for the first time in three years this week, fell 5 basis points to -0.07%.

A bumpy start to earnings season also added to the darkness with Netflix NFLX.
Shares fell 20% on Friday after the streaming giant’s subscriber count outlook fell far short of expectations. US Stocks DJIA,


mixed open.

No European sector was in the green, while financial and technology sectors led. Heavily weighted ASML Holding ASML,

down 3% and ams AMS,
Shares fell 3% as enterprise software giant SAP SAP,
fell by 1.2%.

Energy stocks were under pressure as risk aversion hit oil prices CL00,

and BP BP,

and Royal Dutch Shell RDS

Stocks fell more than 2% each.

The renewable energy sector suffered heavy losses after Siemens Gamesa Renewable Energy SGRE,
Late Thursday lowered its guidance for the fiscal year, resulting in an operating loss in the first quarter due to ongoing supply chain issues. Shares plummeted 13%.

The warning from its Spanish subsidiary prompted Siemens Energy ENR to
lowering its targets for fiscal 2022, and shares fell 16%. Those of the competitor Vestas Wind Systems VWS,
down 6%.

Elsewhere shares of Airbus AIR,
Slumped 1.5% after the aerospace multinational canceled a plane order from state-owned carrier Qatar as the two companies have been at odds over surface degradation of A350 jets for months.


Comments are closed.