Europe markets open: Stoxx 600 falls 0.4% as global tech sell-off spreads
European stocks opened broadly lower on Wednesday, erasing the previous session’s positive start to the month as a wave of selling in technology shares spread from the US and Asia, fueled by growing investor anxiety over stretched valuations.
The pan-European Stoxx 600 index was down 0.4% shortly after the opening bell, with most major bourses and sectors trading in negative territory.
The declines were led by Germany’s DAX, which fell 0.7%, and France’s CAC 40, which dropped 0.4%.
The primary driver of the negative sentiment was a sharp sell-off in technology stocks, which followed steep declines in the US on Tuesday.
The Stoxx 600 Europe Technology Index fell 1.2% in early trade, as investors took profits from the market’s most crowded trade.
This mirrors a wider global trend, with futures tied to the tech-heavy Nasdaq sliding overnight and Japan’s Nikkei 225 plunging below the 50,000 mark as investors fled AI-related stocks.
The cautious mood was further compounded by recent warnings from the CEOs of Goldman Sachs and Morgan Stanley, who advised investors to brace for a market downturn.
Earnings in focus as Novo Nordisk, BMW report
It is also another busy day for corporate earnings in Europe. Shares of Danish pharmaceutical giant Novo Nordisk initially fell as much as 4.5% before reversing course.
The company posted third-quarter net profits of 20 billion Danish kroner ($3.1 billion), in line with analyst expectations.
Meanwhile, shares of German automaker BMW fell 1.5% after it reported third-quarter earnings before interest of 2.3 billion euros, also meeting analysts’ forecasts.
Central banks and economic data on the radar
Beyond corporate results, investors are also watching for key economic and policy updates. Sweden’s Riksbank is set to announce its latest interest rate decision on Wednesday.
On the data front, markets will be parsing the latest German factory orders, U.K. new car sales, and purchasing managers’ index (PMI) data from across the European region.
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