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Feb. 26, 2021, 8:01 a.m. EST

Tech names drag European stocks lower after brutal session on Wall Street

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By Barbara Kollmeyer

Technology stocks were bearing the brunt of European equity losses on Friday, playing catch up to a rough day on Wall Street.

The Stoxx Europe 600 index /zigman2/quotes/210599654/delayed XX:SXXP +0.90% fell 0.5% to 409.55, bringing the weekly loss to just over 1%. The German DAX /zigman2/quotes/210597999/delayed DX:DAX +1.34% slipped 0.2%, the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 +0.85% fell 0.5% and the FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX +0.52% dipped 0.2%. The euro /zigman2/quotes/210561242/realtime/sampled EURUSD -0.1920% and the pound /zigman2/quotes/210561263/realtime/sampled GBPUSD +0.0072% fell at the expense of a stronger U.S. dollar /zigman2/quotes/210598269/delayed DXY +0.10% .

The losses were contained, though, as a selling frenzy for global bonds eased up. A climb for the U.S. 10-year government bond /zigman2/quotes/211347051/realtime BX:TMUBMUSD10Y -0.88% above a one-year high of 1.5% on Thursday triggered a rout for stocks, but that yield has since moved back down to 1.46%. The yield on the 10-year Germany bund /zigman2/quotes/211347112/realtime BX:TMBMKDE-10Y 0.00% was hovering at just under year highs at 0.274%.

“The fear about the rise in interest rates is that they are likely to choke off the economic recovery,” said Naeem Aslam, chief market analyst at AvaTrade.

European Central Bank Executive Board Member Isabel Schnabel said on Friday that the central bank would need to monitor long-term real rates.

“A rise in real long-term rates at the early stages of the recovery, even if reflecting improved growth prospects, may withdraw vital policy support too early and too abruptly given the still fragile state of the economy,” she said in a virtual conference . “Policy will then have to step up its level of support.”

Europe’s tech stocks were selling off in tandem with Thursday’s losses on Wall Street, which also spilled over into Asia. Aslam said investors had been moving out of the tech sector and into those more geared to an economic recovery, though Thursday’s selloff was uniform.

In the chip sector, shares of Dutch group ASML Holding /zigman2/quotes/210293876/composite ASML +0.56% /zigman2/quotes/206208657/delayed NL:ASML +1.23% and STMicroelectronics /zigman2/quotes/207734906/composite STM +0.10% /zigman2/quotes/204485995/delayed FR:STM +0.23% fell around 1% each. ASM International /zigman2/quotes/201180544/delayed NL:ASM -0.26% shares dropped 2%.

Shares of major oil companies BP /zigman2/quotes/202286639/delayed UK:BP -0.18% /zigman2/quotes/207305210/composite BP -0.08% and Total /zigman2/quotes/201824152/composite TOT -0.29% /zigman2/quotes/206172043/delayed FR:FP -0.13% were down 1.7% and nearly 1%, respectively, tracking lower crude futures /zigman2/quotes/209723049/delayed CL00 -0.32% prices.

Read: President Biden orders airstrikes against Iran-backed militia in Syria

Airlines were in focus, with shares of International Consolidated Airlines Group /zigman2/quotes/208070069/delayed UK:IAG +0.63% rising 4%. The operator of British Airways, Iberia and other airlines swung to a record  €7.4 billion  ($9 billion) loss, including exceptional items relating to fuel and currency hedges, early fleet retirement, and restructuring costs. The company said it can’t provide 2021 guidance due to COVID-19 pandemic uncertainty.

Rising in tandem were shares of easyJet /zigman2/quotes/202825892/delayed UK:EZJ +0.55% and holiday tour operator TUI /zigman2/quotes/207049334/delayed UK:TUI +0.59% .

But shares of Norwegian Air Shuttle /zigman2/quotes/204014691/delayed NO:NAS +1.88% fell 3%, after the airline said losses surged in the fourth quarter amid rising impairments. The company said it would next week publish a detailed plan to support its future.

/zigman2/quotes/210599654/delayed
XX : STOXX
442.49
+3.94 +0.90%
Volume: 0.00
April 16, 2021 11:03p
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/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
15,459.75
+204.42 +1.34%
Volume: 82,757
April 16, 2021 6:30p
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/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
6,287.07
+52.93 +0.85%
Volume: 85,545
April 16, 2021 6:05p
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/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,019.53
+36.03 +0.52%
Volume: 681,023
April 16, 2021 4:58p
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/zigman2/quotes/210561242/realtime/sampled
US : Tullett Prebon
1.1959
-0.0023 -0.1920%
Volume: 0.0000
April 19, 2021 12:21a
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/zigman2/quotes/210561263/realtime/sampled
US : Tullett Prebon
1.3841
+0.0001 +0.0072%
Volume: 0.0000
April 19, 2021 12:21a
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/zigman2/quotes/210598269/delayed
US : U.S.: ICE Futures U.S.
91.65
+0.09 +0.10%
Volume: 0.00
April 19, 2021 12:11a
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/zigman2/quotes/211347051/realtime
add Add to watchlist BX:TMUBMUSD10Y
BX : Tullett Prebon
1.57
-0.01 -0.88%
Volume: 0.00
April 19, 2021 12:21a
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/zigman2/quotes/211347112/realtime
add Add to watchlist BX:TMBMKDE-10Y
BX : Tullett Prebon
-0.26
0.00 0.00%
Volume: 0.00
April 18, 2021 6:05p
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/zigman2/quotes/210293876/composite
US : U.S.: Nasdaq
$ 645.69
+3.60 +0.56%
Volume: 605,250
April 16, 2021 4:00p
P/E Ratio
65.84
Dividend Yield
0.43%
Market Cap
$264.19 billion
Rev. per Employee
$567,632
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/zigman2/quotes/206208657/delayed
NL : Netherlands: Euronext Amsterdam
536.40
+6.50 +1.23%
Volume: 818,952
April 16, 2021 5:39p
P/E Ratio
63.23
Dividend Yield
0.51%
Market Cap
€220.71 billion
Rev. per Employee
€497,934
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/zigman2/quotes/207734906/composite
US : U.S.: NYSE
$ 38.98
+0.04 +0.10%
Volume: 2.33M
April 16, 2021 4:00p
P/E Ratio
32.41
Dividend Yield
0.37%
Market Cap
$35.28 billion
Rev. per Employee
$223,547
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/zigman2/quotes/204485995/delayed
FR : France: Euronext Paris
32.66
+0.08 +0.23%
Volume: 2.12M
April 16, 2021 5:39p
P/E Ratio
31.71
Dividend Yield
0.61%
Market Cap
€29.48 billion
Rev. per Employee
€194,807
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/zigman2/quotes/201180544/delayed
NL : Netherlands: Euronext Amsterdam
263.80
-0.70 -0.26%
Volume: 301,707
April 16, 2021 5:35p
P/E Ratio
45.68
Dividend Yield
0.76%
Market Cap
€12.89 billion
Rev. per Employee
€514,178
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/zigman2/quotes/202286639/delayed
UK : U.K.: London
302.95 p
-0.55 -0.18%
Volume: 39.52M
April 16, 2021 4:35p
P/E Ratio
N/A
Dividend Yield
5.02%
Market Cap
£61.27 billion
Rev. per Employee
£2.21M
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/zigman2/quotes/207305210/composite
US : U.S.: NYSE
$ 25.18
-0.02 -0.08%
Volume: 10.71M
April 16, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
6.18%
Market Cap
$84.50 billion
Rev. per Employee
$2.86M
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/zigman2/quotes/201824152/composite
US : U.S.: NYSE
$ 45.36
-0.13 -0.29%
Volume: 1.66M
April 16, 2021 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$118.51 billion
Rev. per Employee
$1.14M
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/zigman2/quotes/206172043/delayed
FR : France: Euronext Paris
37.95
-0.05 -0.13%
Volume: 5.38M
April 16, 2021 5:39p
P/E Ratio
N/A
Dividend Yield
6.96%
Market Cap
€99.01 billion
Rev. per Employee
€995,543
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/zigman2/quotes/209723049/delayed
US : U.S.: Nymex
$ 62.99
-0.20 -0.32%
Volume: 22,856
April 19, 2021 12:11a
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/zigman2/quotes/208070069/delayed
UK : U.K.: London
208.25 p
+1.30 +0.63%
Volume: 20.45M
April 16, 2021 4:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£10.29 billion
Rev. per Employee
£120,743
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/zigman2/quotes/202825892/delayed
UK : U.K.: London
995.40 p
+5.40 +0.55%
Volume: 3.03M
April 16, 2021 4:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£4.50 billion
Rev. per Employee
£214,929
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/zigman2/quotes/207049334/delayed
UK : U.K.: London
391.50 p
+2.30 +0.59%
Volume: 3.11M
April 16, 2021 4:35p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£4.28 billion
Rev. per Employee
£144,389
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/zigman2/quotes/204014691/delayed
NO : Norway: Oslo
kr 60.62
+1.12 +1.88%
Volume: 662,701
April 16, 2021 4:29p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
kr2.41 billion
Rev. per Employee
N/A
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