Bulletin
Investor Alert

New York Markets Open in:

Europe Markets Archives | Email alerts

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

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

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    STOXX Europe 600 Index (SXXP)
  • X
    DAX (DAX)
  • X
    CAC 40 Index (PX1)

or Cancel Already have a watchlist? Log In

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 -0.81% fell 0.5% to 409.55, bringing the weekly loss to just over 1%. The German DAX /zigman2/quotes/210597999/delayed DX:DAX -0.67% slipped 0.2%, the French CAC 40 /zigman2/quotes/210597958/delayed FR:PX1 -0.88% fell 0.5% and the FTSE 100 /zigman2/quotes/210598409/delayed UK:UKX -0.21% dipped 0.2%. The euro /zigman2/quotes/210561242/realtime/sampled EURUSD -0.0426% and the pound /zigman2/quotes/210561263/realtime/sampled GBPUSD -0.2041% fell at the expense of a stronger U.S. dollar /zigman2/quotes/210598269/delayed DXY -0.31% .

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 -1.73% 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 +7.30% 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 +1.74% /zigman2/quotes/206208657/delayed NL:ASML -1.79% and STMicroelectronics /zigman2/quotes/207734906/composite STM +1.48% /zigman2/quotes/204485995/delayed FR:STM -0.93% fell around 1% each. ASM International /zigman2/quotes/201180544/delayed NL:ASM -2.40% shares dropped 2%.

Shares of major oil companies BP /zigman2/quotes/202286639/delayed UK:BP +0.61% /zigman2/quotes/207305210/composite BP +1.99% and Total were down 1.7% and nearly 1%, respectively, tracking lower crude futures /zigman2/quotes/209723049/delayed CL00 +0.04% 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 +2.09% 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 +4.19% and holiday tour operator TUI /zigman2/quotes/207049334/delayed UK:TUI +3.48% .

But shares of Norwegian Air Shuttle /zigman2/quotes/204014691/delayed NO:NAS +1.15% 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
463.71
-3.79 -0.81%
Volume: 0.00
Sept. 24, 2021 12:53p
loading...
/zigman2/quotes/210597999/delayed
DAX
DX : Xetra Indices
15,538.58
-105.39 -0.67%
Volume: 16,376
Sept. 24, 2021 12:53p
loading...
/zigman2/quotes/210597958/delayed
FR : France: Euronext Paris
6,643.00
-58.98 -0.88%
Volume: 20,985
Sept. 24, 2021 12:53p
loading...
/zigman2/quotes/210598409/delayed
UK : FTSE UK
7,063.45
-14.90 -0.21%
Volume: 177,216
Sept. 24, 2021 11:53a
loading...
/zigman2/quotes/210561242/realtime/sampled
US : Tullett Prebon
1.1734
-0.0005 -0.0426%
Volume: 0.0000
Sept. 24, 2021 7:08a
loading...
/zigman2/quotes/210561263/realtime/sampled
US : Tullett Prebon
1.3691
-0.0028 -0.2041%
Volume: 0.0000
Sept. 24, 2021 7:07a
loading...
/zigman2/quotes/210598269/delayed
US : U.S.: ICE Futures U.S.
93.17
-0.29 -0.31%
Volume: 0.00
Sept. 24, 2021 6:58a
loading...
/zigman2/quotes/211347051/realtime
add Add to watchlist BX:TMUBMUSD10Y
BX : Tullett Prebon
1.41
-0.02 -1.73%
Volume: 0.00
Sept. 24, 2021 7:07a
loading...
/zigman2/quotes/211347112/realtime
add Add to watchlist BX:TMBMKDE-10Y
BX : Tullett Prebon
-0.24
+0.02 +7.30%
Volume: 0.00
Sept. 24, 2021 1:07p
loading...
/zigman2/quotes/210293876/composite
US : U.S.: Nasdaq
$ 879.78
+15.04 +1.74%
Volume: 744,483
Sept. 23, 2021 4:00p
P/E Ratio
64.21
Dividend Yield
0.32%
Market Cap
$355.67 billion
Rev. per Employee
$567,632
loading...
/zigman2/quotes/206208657/delayed
NL : Netherlands: Euronext Amsterdam
740.30
-13.50 -1.79%
Volume: 213,997
Sept. 24, 2021 12:52p
P/E Ratio
64.48
Dividend Yield
0.37%
Market Cap
€303.12 billion
Rev. per Employee
€497,934
loading...
/zigman2/quotes/207734906/composite
US : U.S.: NYSE
$ 46.48
+0.68 +1.48%
Volume: 862,855
Sept. 23, 2021 4:00p
P/E Ratio
26.96
Dividend Yield
0.37%
Market Cap
$41.37 billion
Rev. per Employee
$222,075
loading...
/zigman2/quotes/204485995/delayed
FR : France: Euronext Paris
39.30
-0.37 -0.93%
Volume: 423,069
Sept. 24, 2021 12:52p
P/E Ratio
27.23
Dividend Yield
0.52%
Market Cap
€35.25 billion
Rev. per Employee
€194,807
loading...
/zigman2/quotes/201180544/delayed
NL : Netherlands: Euronext Amsterdam
353.30
-8.70 -2.40%
Volume: 107,773
Sept. 24, 2021 12:52p
P/E Ratio
47.15
Dividend Yield
0.57%
Market Cap
€17.07 billion
Rev. per Employee
€514,178
loading...
/zigman2/quotes/202286639/delayed
UK : U.K.: London
319.70 p
+1.95 +0.61%
Volume: 7.36M
Sept. 24, 2021 11:52a
P/E Ratio
10.36
Dividend Yield
5.00%
Market Cap
£63.19 billion
Rev. per Employee
£2.21M
loading...
/zigman2/quotes/207305210/composite
US : U.S.: NYSE
$ 26.16
+0.51 +1.99%
Volume: 10.29M
Sept. 23, 2021 4:00p
P/E Ratio
10.22
Dividend Yield
4.79%
Market Cap
$86.22 billion
Rev. per Employee
$2.84M
loading...
/zigman2/quotes/209723049/delayed
US : U.S.: Nymex
$ 73.33
+0.03 +0.04%
Volume: 67,150
Sept. 24, 2021 6:58a
loading...
/zigman2/quotes/208070069/delayed
UK : U.K.: London
175.82 p
+3.60 +2.09%
Volume: 11.97M
Sept. 24, 2021 11:52a
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£8.66 billion
Rev. per Employee
£120,743
loading...
/zigman2/quotes/202825892/delayed
UK : U.K.: London
681.20 p
+27.40 +4.19%
Volume: 1.57M
Sept. 24, 2021 11:53a
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£4.99 billion
Rev. per Employee
£214,929
loading...
/zigman2/quotes/207049334/delayed
UK : U.K.: London
333.20 p
+11.20 +3.48%
Volume: 1.85M
Sept. 24, 2021 11:51a
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
£3.46 billion
Rev. per Employee
£144,389
loading...
/zigman2/quotes/204014691/delayed
NO : Norway: Oslo
kr 10.06
+0.11 +1.15%
Volume: 4.74M
Sept. 24, 2021 12:52p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
kr8.32 billion
Rev. per Employee
kr1.28M
loading...

This Story has 0 Comments
Be the first to comment
More News In
Markets

Story Conversation

Commenting FAQs »

Partner Center

World News from MarketWatch

Link to MarketWatch's Slice.