European Markets Dip Amid Tariff Concerns and Disappointing Earnings from ASML

European markets opened lower on Wednesday, continuing the trend of uncertainty driven by concerns over U.S. trade tariffs. The pan-European Stoxx 600 index fell by 0.8%, following two days of gains. Among the major disappointments, Dutch semiconductor company ASML saw a 4.6% drop in its stock after reporting weaker-than-expected net bookings for the first quarter, raising concerns about potential slowdowns in demand. ASML’s decline was mirrored by industry peer ASM International, which also faced a 3.5% drop.

Meanwhile, the U.K. saw a slight relief as inflation data for March showed a lower-than-expected rate of 2.6%, which was a slight dip from February’s 2.8%. This inflation figure came in under economists’ expectations of 2.7%, offering a glimpse of stability for the economy despite the global macroeconomic challenges. Investors are also eyeing key earnings reports, including those from Heineken, which revealed a decline in first-quarter revenue despite an increase in sales of its premium brands.

Global economic factors, particularly ongoing U.S.-China trade tensions, continue to influence sentiment across the markets. Chinese GDP growth exceeded expectations with a 5.4% expansion in the first quarter, signaling resilience despite tariff-related risks. However, the effects of U.S. tariffs on global trade remain a key concern, with major investment banks downgrading their growth outlook for China due to these uncertainties.

In Asia, chip stocks followed a negative trend after Nvidia announced a significant $5.5 billion charge tied to its exports to China. This charge, along with concerns over the broader semiconductor supply chain, has added pressure to an already fragile market. Investors are now closely monitoring both the impact of tariffs on global tech and the potential ripple effects on European companies in the sector.

Source: CNBC