PARIS: European shares closed a touch lower on Wednesday after a warning from Dutch chip company ASML weighed down technology stocks, while a rise in shares of insurers limited overall declines.
The pan-European STOXX 600 index fell 0.1% but was still hovering around its 14-month highs. Hawkish comments by European Central Bank officials signalling more rate hikes also weighed on sentiment.
ECB’s chief economist Philip Lane on Tuesday backed a further interest rate increase at the ECB’s next meeting but said its size would depend on incoming data, while earlier that day Goldman Sachs raised its terminal rate forecast for the ECB to 3.75% from 3.5%.
“The ECB is the one central bank throughout the last three months that has been very stern on its rate path and where they expect it to go... we’ve seen unanimous responses starting with Lagarde all the way through the committee showing that hawkish stance,” said Daniela Hathorn, senior market analyst at Capital.com.
Rate-sensitive real estate and technology shares were down 1.0% and 1.9% respectively.
Tech stocks touched their lowest level in three weeks, after shares of ASML Holding NV fell 3.7% as it noted some signs of caution among customers, overshadowing a strong quarterly showing.
Other chipmakers ASM International, BE Semiconductor and Aixtron fell between 1.8% and 4%.
Data showed euro zone inflation eased last month but underlying readings remained stubbornly high, raising worries at the ECB about the persistence of price pressures.
Comments
Comments are closed.