Brussels, Belgium. European shares fell on Wednesday as renewed tensions in the Middle East unsettled investors, while technology stocks swung between gains and losses amid doubts over whether the sector’s recent rally could continue. The pan-European STOXX 600 index was down 0.6% at 642.22 points as of 0716 GMT.
Oil-sensitive sectors decline
Energy price-sensitive sectors led the losses, with auto stocks falling 1.6% and banks down 1.3%.
Shares of Air France and Wizz Air each dropped more than 2% as crude prices rose on renewed geopolitical tensions. Lufthansa fell 4% after Citigroup downgraded the stock to “sell” from “neutral”.
Middle East tensions in focus
Tensions between the United States and Iran remained high after the two countries traded fire and Washington revoked a licence that had allowed Tehran to sell oil, a move seen as likely to threaten the fragile ceasefire between the two sides.
Technology stocks mixed
Investors also monitored technology stocks, which have had an unsteady start to July following a strong artificial intelligence-driven rally in the previous quarter.
South Korean equities closed 20% below the record high reached in June, confirming a bear market. On Wall Street, the tech-heavy Nasdaq closed below its 50-day moving average, signalling weak short-term momentum.
European technology stocks traded in mixed fashion. Chip equipment maker ASML rose 1%, while semiconductor stocks Soitec and Aixtron each fell more than 1%.
Bahnhof jumps on Telenor deal
Swedish broadband provider Bahnhof rose 18% after telecom operator Telenor agreed to buy a controlling stake in the company in a deal valuing Bahnhof at 6.1 billion Swedish crowns, or $629.7 million.
