Europe: Tech slide, China woes weigh on stocks

[BENGALURU] European stocks fell on Tuesday, as a surge in government bond yields pressured high-growth technology shares, with fresh signs of a slowdown in China's economy weighing on investor sentiment.

The pan-European Stoxx 600 index was down 0.4 per cent, falling for a third session as a jump in US Treasury yields signalled that investors were bracing for higher cash rates and the risk of persistent inflation.

Data showed profit growth at China's industrial firms slowed for a sixth month in August, with an unfolding power crisis a growing threat to output and bottom-lines.

However, a rally in Brent crude futures above $80 per barrel continued to support energy stocks, with the oil and gas index rising 1.1 per cent to fresh highs since February 2020.

Banks were supported by rising rates, but technology stocks fell the most, down almost 2 per cent after their Wall Street peers tumbled overnight.

Swiss computer peripherals maker Logitech dropped 6.3 per cent as Morgan Stanley downgraded the stock to "underweight".

Dutch semiconductor supplier ASM International fell 2.7 per cent despite raising its third-quarter order intake guidance.

REUTERS