Europe: Tech stocks hurt Stoxx 600, ASML logs biggest one-day drop in 26 years
EUROPEAN shares posted their biggest one-day drop in over two weeks on Tuesday, weighed by technology stocks after chip equipment maker ASML’s third-quarter results were leaked and showed a disappointing annual sales forecast.
The pan-European Stoxx 600 index ended 0.8 per cent lower, with tech stocks falling 6.5 per cent in the sector’s biggest one-day drop since October 2020.
The euro zone blue-chip index slid 1.8 per cent, its biggest one-day drop in over two months.
ASML lost 15.6 per cent, the stock’s biggest single day drop since June 1998, after the company reported weak quarterly bookings and trimmed its 2025 sales forecasts. The news was leaked ahead of its scheduled release on Wednesday.
“A lot of investors got carried away on the AI (artificial intelligence) excitement and now we’re seeing companies like ASML looking ahead and finding an equilibrium,” said Danni Hewson head of financial analysis at AJ Bell.
“There’s going to be an awful lot of focus on the other earnings updates of the likes of Nvidia to see whether or not this weakness is replicated in other parts of the sector.”
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In the US, the tech-heavy Nasdaq Composite Index fell nearly 1 per cent.
The Stoxx 600 has climbed around 8.8 per cent so far this year, but lags the S&P 500 index, which has scored double-digit gains led by AI optimism.
Germany’s benchmark index closed 0.1 per cent lower after hitting a record high in the session.
Energy stocks slumped nearly 3.3 per cent as oil prices slid 5 per cent after a media report said Israel will not strike Iran’s oil facility, easing fears of supply disruptions.
Investors’ key focus for the week is the European Central Bank’s monetary policy decision on Thursday. It is widely expected to trim rates further by 25 basis points following recent data such as September’s bigger-than-expected fall in French inflation and the euro zone’s worsening economy.
Among gainers, shares of Ericsson rose 10.8 per cent after the Swedish telecommunications company reported third-quarter core earnings and sales above expectations. The sector jumped nearly 2 per cent.
Bellway surged 8.3 per cent as the UK homebuilder said it expects to construct at least 11 per cent more homes in the 2025 financial year.
TotalEnergies lost 4.8 per cent after the French oil powerhouse said its third-quarter downstream results are expected to sharply decrease due to lower refining margins in Europe and elsewhere.
Deutsche Bank fell 2.6 per cent as its offering of some 16 million shares was priced at 16.01 euros apiece, a bookrunner for the transaction said. REUTERS
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