European shares decline as technology stocks and Middle East tensions weigh
The pan-European STOXX 600 index fell more than 0.5 per cent amid concerns over artificial intelligence investments and regional instability.
European shares fell on Tuesday as technology stocks led the losses, according to a Reuters report cited by The Economic Times. The pan-European STOXX 600 index dropped more than 0.5 per cent to 645.8 points.
Investor sentiment weakened after a US official stated that Washington conducted strikes on Iran's Qeshm Island in the Strait of Hormuz. This occurred a day after Iran expressed openness to peace talks and US President Donald Trump suggested he might delay strikes against Tehran until after the midterm elections.
Technology stocks fell approximately 2 per cent, with Aixtron dropping 3.5 per cent, ASML declining 2.8 per cent, and Siemens Energy shedding 2.4 per cent. Reuters reported that Asian technology stocks also faced pressure following disappointing results from major US hyperscalers last week.
The sector faced further pressure from Apple, which provided a cautious gross margin outlook for the holiday quarter due to rising memory-chip costs. Meanwhile, Brent crude futures rose 1.6 per cent to over $100 a barrel, recovering from a 7 per cent decline in the previous session.
In contrast to the broader market, healthcare stocks gained support from a 6 per cent rally in Bayer. The German pharmaceutical and agriculture group raised its 2026 profit outlook because of stronger performance in its pharmaceuticals business.