LONDON — European stocks fell sharply on Tuesday afternoon, led by a decline in the tech sector, as investors eyed prospects for a global recovery and a fresh round of corporate earnings.
The pan-European Stoxx 600 index tentatively closed 1.5%. Tech stocks fell 3.8% to lead the losses amid fears over lofty valuations and the reopening of economies after tough coronavirus restrictions that strongly benefited tech.
On Wall Street, US stocks also fell as investors maneuvered to choose which stocks to use and which stocks to sell with the market at all-time highs.
Traders have also continued to monitor the Covid-19 situation in India as it shows few signs of slowing down. The World Health Organization said last week that one in three new coronavirus cases globally are reported in India.
In the United States, states have continued to ease pandemic restrictions as part of the vaccine rollout. New York Governor Andrew Cuomo has announced that most capacity restrictions will be lifted in New York, New Jersey and Connecticut, while 24-hour subway service will resume in New York later this month -this.
Saudi Aramco on Tuesday reported stronger-than-expected first-quarter profits due to the rebound in oil prices, with net profit reaching $21.7 billion, compared with $16.7 billion for the same period last year. last.
Earnings in Europe on Tuesday came from companies like Infineon, Deutsche Post DHL Group and Siemens Energy.
stocks in motion
Turning to individual stocks, Danish jeweler Pandora jumped nearly 6% to the top of the Stoxx 600 after reporting a surge in first-quarter sales and raising its full-year forecast.
French aircraft maker Dassault Aviation was another big gainer on Tuesday, with its shares climbing 3.4% after Egypt announced it had placed an order for 30 Rafale fighter jets.
At the bottom of the European blue chip index, German software company Teamviewer fell 12.4%, leading to a sell-off in tech stocks. Swedish Orphan Biovitrum fell 6% after the pharmaceutical group reported a 21% drop in year-on-year revenue for the first three months of 2021.
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– CNBC’s Ryan Browne and Yun Li contributed to this market report.