European stocks fall, led by tech stocks and renewables after Wall Street rout

European stocks fell sharply on Friday, led by technology, which echoed an end-of-session selloff on Wall Street. Earnings warnings in the renewable energy sector sent shares of two Siemens subsidiaries tumbling.

The Stoxx Europe 600 SXXP index,
-1.36%
fell 1.4% to 476.48, after gaining 0.5% on Thursday. The index is on course to fall nearly 1% this week. The German DAX DAX,
-1.40%
down 1.4%, with a similar loss for the CAC 40 PX1,
-1.30%,
while the FTSE 100 UKX index,
-0.95%
fell 1%.

U.S. stock indices gave up an early rebound to decline in the final hour of trading Thursday, a repeat of Wednesday’s volatile session. The worst losses were seen for the Nasdaq Composite COMP,
-1.30%,
which fell 1.3%, pushing further into correction territory.

Stocks struggled early in the year amid a massive bond sell-off as investors anticipate tougher policy from the Federal Reserve. The yield of the 10-year TMUBMUSD10Y,
1.790%
fell 1 basis point to 1.79%, while the 10-year German Bund yield TMBMKDE-10Y,
-0.050%,
which moved into positive territory for the first time in three years this week, slipped 1 basis point to minus 0.041%.

A bumpy start to the earnings season also added to the gloom, with Netflix NFLX,
-1.48%
Shares fell 20% on Thursday night after the streaming giant’s subscriber count outlook remained well below expectations. S&P 500 ES00 futures contracts,
-0.20%
were pointing down, while Nasdaq-100 NQ00 futures,
-0.57%
fell 0.6%.

While technology led the losses in Europe, few sectors showed green. Among chip names in Europe, the heavily weighted ASML Holding ASML,
+1.09%

ASML,
-2.41%
fell 3%, and ams AMS,
-1.58%
shares fell 3%, while enterprise software group SAP SAP,
+0.16%

SAP,
-1.25%
was down 1.2%.

Energy names were under pressure as a risky mood hit CL00 oil prices,
-1.66%

BRN00,
-1.47%,
and BPBP,
-1.59%

BP,
-2.31%
and Royal Dutch Shell RDS.A,
-2.58%

RDSA,
-0.98%
shares fell 1% each.

The renewable energy sector was being hammered, after Siemens Gamesa Renewable Energy SGRE,
-14.46%
On Thursday night, it cut its full-year guidance to a first-quarter operating loss due to ongoing supply chain issues. The shares fell 14%.

The warning from its Spanish subsidiary prompted Siemens Energy ENR,
-11.73%
to lower its targets for fiscal 2022, and the shares fell 10%. Those of the rival Vestas Wind Systems VWS,
-6.95%
fell 6%.

Elsewhere, shares of Airbus AIR,
-1.31%
fell 1.5%, after the multinational aerospace company canceled an order for planes from state carrier Qatar, with the two companies squabbling over the surface degradation of A350 planes for months.

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