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

0

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,
+0.07%
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,
-0.26%
fell 2.2%, with the CAC 40 PX1,
-0.01%
by 2% and the FTSE 100 index UKX,
+0.13%
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,
-1.23%,
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,
1.955%
fell 5 basis points to 1.75%, while the yield on German 10-year Bund TMBMKDE-10Y,
0.245%,
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.
-3.55%
Shares fell 20% on Friday after the streaming giant’s subscriber count outlook fell far short of expectations. US Stocks DJIA,
-1.42%

comp,
-1.23%

SPX,
-1.01%
mixed open.

No European sector was in the green, while financial and technology sectors led. Heavily weighted ASML Holding ASML,
-1.17%

ASML,
+2.49%
down 3% and ams AMS,
+1.10%
Shares fell 3% as enterprise software giant SAP SAP,
-0.95%
fell by 1.2%.

Energy stocks were under pressure as risk aversion hit oil prices CL00,
-0.16%

BRN00,
-0.22%,
and BP BP,
-0.49%

BP,
-2.23%
and Royal Dutch Shell RDS

UK: RDSA
Stocks fell more than 2% each.

The renewable energy sector suffered heavy losses after Siemens Gamesa Renewable Energy SGRE,
+0.77%
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
-0.82%
lowering its targets for fiscal 2022, and shares fell 16%. Those of the competitor Vestas Wind Systems VWS,
+0.03%
down 6%.

Elsewhere shares of Airbus AIR,
+1.73%
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.

Share.

Comments are closed.