The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, July 16, 2024. REUTERS/Staff/File Photo Purchase Licensing Rights, opens new tab
- STOXX 600 down 0.5%
- ASML falls on dour Q3 sales forecast
- Roche jumps on early trial success of second obesity drug
July 17 (Reuters) – European shares fell for a third consecutive session on Wednesday, dragged down by Dutch semiconductor firm ASML following a weak forecast, while investors were wary of potentially strict U.S. trade rules.
The pan-European STOXX 600 index
fell 0.5% to a one-week low as of 0830 GMT, with the technology sub-index
falling 2.6%.
shares shed 6.4% after the chipmaking equipment supplier fell short of estimates for third-quarter sales forecast.
Adding to losses was a report saying the United States has told its allies it is considering using the most severe trade restrictions available if companies continue giving China access to advanced semiconductor technology.
Other semiconductor stocks also lost ground. ASM International
and BE Semiconductor
both fell more than 3% each.
The stocks weighed on Amsterdam’s benchmark index
, which was down 1.1% to its lowest in two weeks.
“(Trade restrictions) are one of the reasons why traders were concerned about European companies. But these things are typically bilateral, so the U.S. will to a degree also suffer if that was implemented,” said Thomas Gehlen, senior market strategist at SG Kleinwort Hambros.
“But none of this is set in stone yet … we can’t say anything about the chance for these kind of policies to be implemented just yet.”
European shares have been subdued this week as market participants assessed a flurry of dour earning updates.
Meanwhile, Britain’s FTSE 100
slipped 0.3% after data showed inflation held at 2%, against estimates of a fall, tempering investor bets for an interest rate cut from the Bank of England.
Focus was also on the final euro zone inflation data for June scheduled for release at 0900 GMT, ahead of the European Central Bank’s rate-setting meeting later in the week. 0#ECBWATCH
Among other stocks, Adidas
gained 3.9% after the German sportswear maker increased its full-year earnings forecast after a better-than-expected second quarter. Rival Puma
also rose 1.5%.
jumped 5% after the Swiss drugmaker said a second drug candidate from its purchase of Carmot Therapeutics yielded positive results in an early-stage trial, asserting itself as a late contender in the race to develop obesity drugs.
Shares of rival Novo Nordisk
, Europe’s largest listed company, fell 3.6%.
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Reporting by Shristi Achar A and Pranav Kashyap in Bengaluru; Editing by Varun H K and Shounak Dasgupta
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Shristi is a correspondent, part of the markets team reporting on the stock markets across U.S., UK, Canada, Europe and Emerging markets.
