“Bleeding” in Europe with disappointing results and “sell-off” of technology companies under pressure
European stock markets are under significant pressure from disappointing quarterly results from several companies, at a time when investors are abandoning technology stocks.
The European benchmark index, Stoxx 600, fell 1.41% to 505.08 points. Almost all sectors that make up this index are in the red, with the media sector leading the losses (-4.36%), followed by the technology sector (-2.59%). Only the household goods sector is trading in positive territory, advancing 0.03%.
The media sector is being pressured by the declines of Universal Music Group, which has fallen 26.43% to 20.88 euros and taken first place on the podium of losses. In the second quarter of the year, the company recorded a slowdown in the growth of its streaming and subscription segments.
Second place on the podium is occupied by Jerónimo Martins, which fell 17.60% to 16.10 euros, after reporting a 29% drop in profits in the first half of the year.
The European tech sector is being pressured by a sell-off in US tech stocks after the Nasdaq Composite lost nearly 4% in Wednesday’s session – its biggest daily drop since late 2022.
“The sell-off in technology stocks in the US is spreading to global stock markets, but this is just a present event. In the long term, profits will end up being much more important,” Ben Laidler, a strategist at Bradesco BBI, told Reuters.
All major European markets recorded losses. The German DAX fell 1.21%, the Italian FTSEMIB dropped 2.32%, while the Spanish IBEX fell 1.52%. The AEX in Amsterdam fell 1.38%, while the French CAC-40 fell 1.89% and the British FTSE fell 0.93%. The Lisbon stock exchange fell the most among its European counterparts, falling 3.14%.
Source: www.jornaldenegocios.pt
