Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Tech slump gives European shares the Monday blues

Published 06/12/2017, 03:37 AM
Updated 06/12/2017, 03:40 AM
© Reuters. Traders work in front of the German share price index, DAX board, at the stock exchange in Frankfurt
UBI
-
STMPA
-
AAPL
-
DLGS
-
STOXX
-
SX8P
-

MILAN (Reuters) - A big fall in Apple suppliers and other tech stocks hurt European shares in opening deals on Monday, more than offsetting well-received election results in France and Italy.

Shares in chipmakers STMicro (PA:STM) and Dialog (DE:DLGS) fell more than 4 percent following heavy losses at U.S. and Asian peers.

The worst drop in Apple shares (O:AAPL) in 14 months on Wall Street on Friday sparked a bout of profit-taking across richly valued tech stocks that have soared to record highs this year.

Europe's tech index (SX8P) fell 2.3 percent, leading sectoral losers in Europe and on track for its biggest one day loss since October 2016. The index has soared around 40 percent over the last year to hit a 15 year high earlier this month.

The pan European index STOXX 600 (STOXX) was down 0.4 percent, mildly supported by gains in oil prices which lifted shares in energy stocks and by parliamentary election results in France which appeared set to give President Emmanuel a huge majority to push through his pro-business reforms.

Italy also offered some comfort after the eurosceptic 5-Star Movement suffered a severe setback in local elections.

© Reuters. Traders work in front of the German share price index, DAX board, at the stock exchange in Frankfurt

Top gainer on the STOXX was Italian lender UBI Banca (MI:UBI), which rose 3 percent on the first day of its day of a 400 million euro cash call to strengthen its capital position after offering to take over three small rescued banks.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.