AMSTERDAM/LONDON: European shares ended lower on Tuesday, with the technology sector having their worst day since late-October after a sudden drop in big US tech stocks. The pan-European STOXX 600 index shed 1.4%, with tech stocks losing 3.8% and some analysts attributing the drop to profit taking.
Tech stocks are trading near record highs on a stellar earnings season and broader optimism over an economic recovery. The tech-heavy Nasdaq slipped more than 2%, from near record-high levels, with highly-valued tech companies bearing the brunt of selling.
In Europe, Germany's bourse shed 2.5%, the most in the region, due to its high composition of tech stocks. Chipmaker Infineon fell 5.9% and was among the top drags on the German index, after CEO Reinhard Ploss said he was expecting supply constraints in the automotive segment to only ease in the second half, with lost volumes likely to be made up in 2022. Europe's automakers fell 3.2%.
Miners rose 0.2%, and oil and gas stocks fell the least, supported by strong resource prices as investors bet on a strong global rebound after massive vaccination drives in developed countries and unprecedented stimulus. German meal-kit delivery company HelloFresh fell 6.7% as worries about consumer behaviour, amid easing lockdowns, overshadowed a surge in first-quarter customer base.