European stock markets mostly close falling under pressure from the tech sector

European stock markets closed mostly lower this Tuesday (7), pressured by the sharp drop in the technology sector, after Samsung's earnings triggered a global wave of sales in shares linked to artificial intelligence (AI). Investors also monitored the escalation of tensions in the Strait of Hormuz, new indicators of the German economy and statements from European authorities.

In London, the FTSE 100 closed down 0.13%, at 10,665 points. In Frankfurt, the DAX fell 1.27%, to 25,489 points. In Paris, the CAC 40 lost 0.51%, to 8,436 points. In Milan, the FTSE MIB fell 0.95%, to 52,455 points. In Madrid, the Ibex 35 fell 0.02%, to 19,679 points. In Lisbon, the PSI 20 gained 0.35%, to 9,249 points. Quotes are preliminary.

In the United Kingdom, the Bank of England (BoE) warned of increased risks to financial stability due to greater leverage in AI-linked stocks. It was precisely the tech sector, which fell 3.5% in the wake of Asian pressure. ASML (-7.4%), Infineon (-8.1%), STMicroelectronics (-7.7%), Siltronic (-11.5%) and BE Semiconductor (-6.7%) retreated.

In Paris, the luxury sector (+1%) offset the technology mood, with names like LVMH up 1%. Investors also considered the decision of the French court that authorized Marine Le Pen to contest the 2027 presidential election, as long as she serves her sentence with an ankle bracelet.

Shell rose 3.2% after forecasting stronger results in its gas division, while BP (+1.7%) and TotalEnergies (+1.3%) were also helped by the rise in oil following reports of three new attacks on ships in Hormuz. Despite new tensions, the European defense sector fell 2.3% as the market monitors the start of the North Atlantic Treaty Organization (NATO) summit in Ankara, Turkey.

Among the macroeconomic highlights, Germany's industrial production increased 0.9% in May compared to April, above expectations. ING assessed that the result "challenges fears of recession", although it considered that the industry's recovery remains gradual. The head of the European Central Bank (ECB), Fabio Panetta, stated that the prospects for the euro zone remain fragile and defended caution in the conduct of monetary policy.

*With information from Dow Jones Newswires

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Source: CNN