European tech stocks caught in global sector sell-off – Financial Times

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Have you tried switching them off and switching them back on again?

Tech stocks, which have been at the forefront of the rally to record highs on global stock indices, are under growing pressure as investors desert the sector in European trading this morning.

The index tracking the sector in Europe is down 3 per cent, setting it on course for it’s biggest single-session loss since the UK’s Brexit vote last summer.

The list of biggest fallers on national stock benchmarks across Europe is littered with chipmakers and software developers.

Among them:

  • Micro Focus International is down almost 3 per cent in London
  • Austria Microsystems is down 8.3 per cent
  • ST Microelectronics is 7 per cent softer
  • ASM International is down 5.1 per cent
  • Dialog Semiconductor is over 5 per cent weaker.

The selling comes after US tech sector led a Wall Street sell-off on Friday, where the Nasdaq Composite lost 1.8 per cent.

To put the selling in context, the sharp move down takes the index tracking the sector down from 15-year highs, after it played a starring role in the rally taking global stock indices to record highs earlier this year.

Nonetheless, it is notably steeper than the fall on wider equities indices. The Euro Stoxx 600 is down 1 per cent, as is the Xetra Dax 30 in Frankfurt and the CAC 40 in Paris is down 0.8 per cent. London’s FTSE 100 is down 0.4 per cent.

“Analysts have been warning about the huge appreciation in several big name tech stocks this year and pointing out that there is room for at least a pause,” said commentary from Rabobank.