Adding to tech woes, ASML, the world’s biggest supplier of computer chip-making equipment, warned that tariffs were increasing uncertainty for its outlook for 2025 and 2026, sending its shares 7.4% lower.
The pan-European STOXX 600 index fell 0.9%, as of 0706 GMT, after two days of gains although market moves were tamer compared to a week ago.
Other regional indexes – Germany, France, Spain, and the UK also fell between 0.3% and 0.8%.
Nvidia faced a $5.5 billion charge related to its most advanced chip available for sale in China, as U.S. attempts to keep ahead in the AI race.
The European technology sector fell 3.2%, leading declines among sectors. The outlook for European corporate earnings has worsened as the uncertainty caused by U.S. President Donald Trump‘s tariffs persists, with analysts expecting companies to report a 3% drop in first-quarter profit, a deeper decline than the 2.2% drop analysts expected a week ago, according to data compiled by LSEG IBES. The focus is also on the European Central Bank’s policy meeting on Thursday, with markets widely anticipating a 25-basis-point rate cut. (Reporting by Sukriti Gupta and Medha Singh; Editing by Mrigank Dhaniwala)
