European stocks fall amid Airbus setbacks, weak technology
Date
6/25/2024 9:17:03 AM
(MENAFN) European Stocks experienced a downturn on Tuesday, with significant pressure emanating from the industrial sector due to recent developments at Airbus and a broader decline in technology stocks. The STOXX 600 index, a key benchmark for European equities, saw a decline of 0.3 percent during trading. This drop was notably influenced by Airbus, whose shares plummeted by 8.4 percent. The aerospace giant, the largest aircraft manufacturer in Europe, recently revised its industrial and financial targets downward. Additionally, Airbus reported substantial losses amounting to 900 million euros ($965 million) stemming from its struggling space sector operations, further exacerbating investor concerns.
The industrial goods and services sector index mirrored this negative sentiment, falling by 1.5 percent in early trading. This sector-wide decline was compounded by broader market anxieties. In the technology sub-index, which encompasses shares of several leading European chip-related companies, there was a 1.5 percent decrease. This was largely attributed to the underwhelming performance of Nvidia's stock on Wall Street in the previous session, which rippled through European markets.
Adding to the market's woes, shares of the German pharmaceutical company Merck plunged by 8.7 percent. This sharp decline followed the company's announcement that it had ceased trials of a drug intended to treat certain types of cancer, a decision that evidently disheartened investors.
Market participants are also closely monitoring the political landscape, particularly the upcoming first round of the French parliamentary elections scheduled for Sunday. The CEO of Euronext, the operator of the Paris Stock Exchange, expressed investor apprehensions regarding the potential ascent of a politically extremist party with limited governmental experience. This political uncertainty is contributing to the cautious mood among investors, as they brace for possible implications on the market.
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