European stocks opened lower as chip stocks were dragged down by Taiwan Semiconductor Manufacturing Co. outlook cut, while investors digested a slew of earnings reports.
The Stoxx 600 Index dropped 0.2% by 8:14 a.m. in London on Thursday, with technology stocks weighing down the most, and mining and energy sectors in the green.
ASML Holding NV led the selloff in European tech stocks after TSMC warning showed investors that the global electronics slump may persist for some time despite a boom in AI development. Among other stocks, Electrolux AB slumped after the Swedish home appliance maker said it plans to offload various non-core brands worth about $1 billion as losses continue to mount. EasyJet Plc shares were largely flat after beating third-quarter profit and forecasting strong demand into the end of the year.
For the time being, European equities are trading sideways before central bank meetings next week increase volatility again, said Ulrich Urbahn, head of multi-asset strategy and research at Berenberg. Markets are digesting mixed earnings, Urbahn added. “The focus will be on the reporting season this week and the central banks next week,” he said.
The latest pledges from China to rebuild a shattered private sector fell flat with investors, who said more concrete steps would be needed to boost sentiment.
For more on equity markets:
- Looking to China for Next Leg Higher Carries Risks: Taking Stock
- US Stock Futures Fall as Tesla, Netflix Slide After Earnings
You want more news on this market? Click here for a curated First Word channel of actionable news from Bloomberg and select sources. It can be customized to your preferences by clicking into Actions on the toolbar or hitting the HELP key for assistance. To subscribe to a daily list of European analyst rating changes, click here.
