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,
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,
down 1.4%, with a similar loss for the CAC 40 PX1,
while the FTSE 100 UKX index,
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,
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,
fell 1 basis point to 1.79%, while the 10-year German Bund yield TMBMKDE-10Y,
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,
Shares fell 20% on Thursday night after the streaming giant’s subscriber count outlook remained well below expectations. S&P 500 ES00 futures contracts,
were pointing down, while Nasdaq-100 NQ00 futures,
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,

fell 3%, and ams AMS,
shares fell 3%, while enterprise software group SAP SAP,

was down 1.2%.

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

and BPBP,

and Royal Dutch Shell RDS.A,

shares fell 1% each.

The renewable energy sector was being hammered, after Siemens Gamesa Renewable Energy SGRE,
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,
to lower its targets for fiscal 2022, and the shares fell 10%. Those of the rival Vestas Wind Systems VWS,
fell 6%.

Elsewhere, shares of Airbus AIR,
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.

Comments are closed.