European stocks fall as economy fragility, weak technology sector weigh on markets

(MENAFN) European stocks experienced a decline during trading on Wednesday as investors evaluated the final reading of the euro zone purchasing managers' index (PMI). The survey data highlighted some economic fragility within the euro zone, revealing deteriorations in new orders, employment, and business confidence, despite overall economic growth. The Stoxx 600 index dropped by 0.95 percent, settling at 514.8 points, marking its lowest level in over a week. This downturn was exacerbated by a notable decline in shares of Dutch chipmakers ASML and ASM International, which fell by 5.95 percent and 5.70 percent, respectively. The tech sector, particularly semiconductor stocks, faced significant pressure following a slump in US markets.

The final PMI data from S&P Global indicated that the euro zone's private sector economy expanded at its fastest rate since May, with the composite PMI rising to 51 points in August from 50.2 points in July. This growth was driven primarily by the services sector, which saw its index increase to 52.9 points from 51.9 points. Despite this positive data, the broader market sentiment remained cautious, influenced by ongoing concerns over economic stability and sector-specific challenges. 

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