FRANKFURT: European stocks were hit by a selloff in technology shares on Tuesday, as US peers slumped on fears of new coronavirus restrictions, while London blue-chips outperformed on a boost for the telecoms and energy sectors.
The pan-European STOXX 600 index fell 0.8% after two days of gains, with technology stocks posting their biggest drop in over a month, down 2.6%.
Shares in SAP SE, ASML Holding NV, Prosus NV and Infineon Technologies AG fell between 2.6% and 5%, tracking continued declines in US tech majors on worries that another lockdown in California to contain a surge of coronavirus infections may slow a US economic recovery.
Germany's DAX index ended 0.8% lower. European banks cut a chunk of their losses after largest US lender JPMorgan Chase & Co posted a smaller-than-expected 51% drop in second-quarter profit. Healthcare stocks were among the biggest drags, with Roche down 1.6%. The Swiss drugmaker struck a $1.7 billion cancer drug pact with Blueprint Medicines, which includes rights to the US company's lung cancer drug pralsetinib.
London's FTSE 100 cut losses to end slightly higher as oil stocks cheered recovering crude prices. BP rose 2.6%.
Sources said BP delivered 3 million barrels of Iraqi oil to the Shanghai International Energy Exchange this month, becoming the first major global trader to make a physical delivery since China launched the futures market in 2018. Telecom operators BT Group and Vodafone rose after Prime Minister Boris Johnson ordered equipment from Chinese telecom equipment maker Huawei be banned from Britain's 5G network by 2027.
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