FINWIRES · TerminalLIVE
FINWIRES

Tech Swoon Undercuts European Bourses Midday

By

European bourses tracked lower midday Tuesday as traders joined global counterparts in stepping back from rich valuations in semiconductor and AI-related equities.

Tech stocks led losses on continental trading floors, while food shares bucked trends to gain.

Investors also eyed Wall Street futures flashing red, and lower closes overnight on Asian exchanges, including a 10% decline on Seoul's KOSPI index.

In economic news, the flash Eurozone purchasing managers index composite output index, a combination of the continent's manufacturing and services sectors, struck 49.5 in June, up from 48.5 in May, but still below the 50-mark that separates private-sector growth from contraction, reported S&P Global.

The pan-continental Stoxx Europe 600 Index was off 0.9% mid-session.

The Stoxx Europe 600 Technology Index was down 3.1%, and the Stoxx 600 Banks Index lost 0.7%.

The Stoxx Europe 600 Oil and Gas Index eased 1.2%, while the Stoxx 600 Europe Food and Beverage Index inclined 1%.

The REITE, a European REIT index, fell 0.7%.

On the national market indexes, Germany's DAX was down 1.2%, and the FTSE 100 in London lost 0.5%. The CAC 40 in Paris was down 0.8%, and Spain's IBEX 35 eased 0.5%.

Yields on benchmark 10-year German bonds were lower, near 2.91%

Front-month North Sea Brent crude-oil futures were steady near $77.46 a barrel.

The Euro Stoxx 50 volatility index was up 14% at 18.56, but still indicating below-average volatility for European stock markets in the next 30 days, a positive signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.

Related Articles

International

South Korea's Composite Consumer Sentiment Index Inches Up in June

South Korea's Composite Consumer Sentiment Index (CCSI) rose to 106.6 in June from 106.1 in May, according to the Bank of Korea's June Consumer Trends Survey released on Tuesday.Consumer sentiment regarding current living standards came in at 94 in June, one point higher than the preceding month, and the sentiment around the future outlook was unchanged at 97, the data showedThe survey was conducted from June 9 to 16.Consumer sentiment regarding the current domestic economic conditions in June was also three points higher than in May at 86. Meanwhile, the sentiment around the future domestic economic conditions slipped by one point from May to 92 in June.Sentiment around future household income and future household spending were both unchanged, at 100 and 110, respectively.As per the data, the expected inflation rate for the upcoming year was 2.8%, unchanged from a month earlier.

^KOSDAQKOSPI
International

South Korean Non-Financial Firms' Sales Rise 13.5% in Q1

Sales at South Korea's non-financial companies rose 13.5% in the first quarter of 2026 from the previous quarter, according to data released Tuesday by the Bank of Korea.The pace of growth was sharper than the 2.5% expansion recorded between Q3 and Q4 2025.Total assets increased 4.7% from a year earlier, also faster than the 1.4% anual growth in Q4 2025.Profitability improved during the quarter, with the operating income-to-sales ratio rising to 13.2% from 6.0% a year earlier.The income-before-taxes-to-sales ratio increased to 15.4% from 7.7%.Financial stability indicators also strengthened, as the debt-to-equity ratio declined to 87% from 88.9% in the previous quarter.

KOSPI
International

New Zealand Employment Confidence Hits Lowest Reading Since September 2004

New Zealand employment confidence fell 12.5 points in the June quarter to 83.1 from 95.6 in the previous quarter, the lowest reading for the survey since it started in September 2004, according to the Westpac-McDermott Miller Employment Confidence index released Tuesday.The survey revealed a widespread loss of confidence, consistent across regions, ages, and income groups, particularly highlighted by the Middle East conflict, which has brought labor market confidence to record lows.A net 60% of survey respondents indicated that finding a job is currently difficult, the lowest level since the mid-2010s.The latest reading is consistent with an expected renewed softness in the jobs market in the coming months, with the unemployment rate projected to reach a cyclical peak of 5.6% by year's end.While job advertisements have remained steady over the last few months, they are still below pre-pandemic levels.Meanwhile, workers' perception of job security also fell, hitting their lowest since the Covid lockdown, particularly among young workers who previously showed the most improvement, according to the survey.

^NZ50