European stocks track U.S. equity rout, with tech under pressure

European stocks track U.S. equity rout, with tech under pressure

European stocks track U.S. equity rout, with tech under pressure

European stocks fell Friday, with technology bearing the brunt of losses on the heels of heavy losses for that sector on Wall Street amid worries over Federal Reserve action to control inflation.

The Stoxx Europe 600 index
XX:SXXP
dropped 0.9% to 482.68, following a modest decline on Thursday, which snapped a two-session winning streak. The German DAX
DX:DAX
fell 0.4% and the French CAC 40
FR:PX1
slid 0.6%, while losses were more modest for the FTSE 100 index
UK:UKX,
which eased 0.1%.

Continued weakness in the U.S. dollar left the euro
EURUSD
and British pound
GBPUSD
higher by 0.1% each.

The Nasdaq Composite
COMP
finished down 2.5% on Thursday in a drubbing for Big Tech, as investors weighed up U.S. producer prices that showed a record 9.7% rise for 2021, on the heels of consumer prices earlier in the week that came in at the highest since the early 1980s annually.

“Rate-sensitive Nasdaq fell the most among the major U.S. indexes, as losses in the Dow Jones, which is believed to be better equipped to cope with higher rates, remained limited,” said Ipek Ozkardeskaya, senior analyst at Swissquote.

U.S. stock futures
ES00

YM00

NQ00
pointed to something of a rebound ahead though, with focus on the start of earnings season from big bank names such as Citigroup
C,
JPMorgan
JPM,
Wells Fargo
WFC
and BlackRock
BLK.
Investors will also get another batch of U.S. data, including retail sales.

In China, data showed the country’s trade surplus hitting a record high in 2021, rising 29.9% to a fresh high of $3.36 trillion, while imports surged 30.1%, lifted in part by soaring commodity prices.

Among Europe’s big tech names, shares of ASM International
NL:ASM
dropped nearly 3%, along with ASML Holding
ASML

NL:ASML,
while Infineon Technologies
XE:IFX
slipped 0.6%. German business software group SAP
SAP

XE:SAP
bucked the weaker trend, with a gain of 1.7%.

EDF
FR:EDF
was the worst performer on the Stoxx Europe 600, as the French state-controlled utility late on Thursday pulled its guidance for the year, saying the government’s new moves to curb higher electricity bills will have an estimated impact of up to 8.4 billion euros ($9.62 billion).

Auto makers were among the gainers, with Volkswagen
XE:VOW,
Renault
FR:RNO
and Daimler Truck Holdings
XE:DTG
all rising by more than 2%.

Shares of health technology company Philips
PHG

NL:PHIA
were also near the top of the gainers list, with a rise of more than 3%.

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