European stocks open lower, but by less than futures had signalled

what happened

European stock markets opened lower, but the decline was milder than futures had indicated before the open, Reuters reported. The STOXX 600 was down about 0.6%, while France's CAC, Germany's DAX and Britain's FTSE 100 each lost between 0.5% and 0.9%. Investor mood is being weighed down by concerns over tech stocks, another rise in oil prices and the upcoming US midterm elections.

Individual shares moved far more sharply. Shares of German software company Teamviewer tumbled almost 24% after it lowered its annual sales forecast. Alstom fell nearly 10% as several banks downgraded their ratings and price targets for the French train maker, after the stock had already lost more than 26% the previous session following a cut to its full-year outlook and a debt reduction plan. Drax, by contrast, gained about 9% after the British power company agreed with Brookfield and AI infrastructure platform Radiant to build a data centre at its power station in northern England.

By sector, tech stocks (.SX8P) fell just over 2%, while miners (.SXPP) dropped 2.5%. Only a few sectors were in positive territory, with healthcare (.SXDP) leading at a 0.4% gain.

why it matters

The opening drop is moderate, but tech-sector worries and rising oil prices are restraining risk appetite. The sharp moves in individual stocks show that company news and guidance are currently driving prices more than the overall market mood.

market impact

European indices: tech-sector weakness and oil prices weigh on sentiment

• ▼STOXX 600 pressure down — tech-sector worries and rising oil prices weigh on overall sentiment
• ▼European tech stocks pressure down — sector sell-off after weak guidance and broader market declines

tags

instruments