European shares fell on Wednesday after renewed tensions in the Middle East rattled investors, while technology stocks flitted between gains and losses as markets assessed whether the sector’s recent global rally could be sustained.
The pan-European STOXX 600 index .STOXX was down 0.6% at 642.22 points, as of 0716 GMT.
Energy price-sensitive sectors such as auto stocks .SXAP dropped the most, down 1.6%, while banks .SX7E slid 1.3%.
Shares of Air France AIRF.PA and Wizz Air WIZZ.L lost more than 2% each as crude prices climbed on renewed geopolitical tensions.
Lufthansa LHAG.DE slipped 4% after Citigroup downgraded the stock rating to “sell” from “neutral”.
Tensions between the U.S. and Iran were high after the two adversaries traded fire and Washington revoked a licence allowing Tehran to sell oil that is likely to threaten the tenuous ceasefire that has held between both parties.
Investors also kept a close watch on technology stocks, which have had a shaky start to July after a strong AI-driven rally in the previous quarter.
South Korean equities .KS11 closed 20% below a record-high level last seen in June, confirming a bear market. The tech-heavy Nasdaq .IXIC in Wall Street closed below its 50-day moving average, indicating weak short-term momentum.
European technology stocks traded in different directions, as chip equipment maker ASML ASML.AS rose 1%, while semiconductor stocks Soitec SOIT.PA and Aixtron AIXGn.DE fell more than 1% each.
Bucking the broader gloom, Swedish broadband provider Bahnhof BAHNb.ST jumped 18% after telecom operator Telenor TEL.OL agreed to buy a controlling stake in the company in a deal valuing it at 6.1 billion Swedish crowns ($629.7 million).
(Reuters)