European markets opened lower on Wednesday as technology stocks led a widespread sell-off, reflecting growing investor concern over inflated valuations in the global tech sector. The pan-European Stoxx 600 index slipped 0.4% in early London trading, with nearly every major index in negative territory. The FTSE 100 in the U.K. edged down 0.1%, while Germany’s DAX lost 0.7%, France’s CAC 40 fell 0.4%, and Italy’s FTSE MIB dropped 0.3%.
The biggest losses were seen among Europe’s technology firms. The Stoxx 600 Technology Index tumbled 1.2% after a sharp sell-off in U.S. tech stocks on Tuesday, where investors began offloading shares of high-flying AI-related companies. The retreat echoes similar trends in Asia, where Japan’s Nikkei 225 plunged below 50,000 points amid a flight from AI-driven stocks.
Market sentiment has soured globally as analysts warn that tech valuations may have reached unsustainable levels. Futures tied to the tech-heavy Nasdaq Composite also fell overnight, underscoring growing anxiety about whether megacap stocks can maintain their rapid growth pace. The mood was further dampened by cautious remarks from the CEOs of Goldman Sachs and Morgan Stanley, who advised investors to brace for potential market pullbacks over the next two years.
Despite the downturn, earnings season continued across Europe with mixed results. Novo Nordisk shares initially fell 4.5% before rebounding to trade 2% higher after reporting a net profit of 20 billion Danish kroner ($3.1 billion) for the third quarter — roughly in line with forecasts. Meanwhile, BMW shares dropped 1.5% after the German carmaker posted quarterly earnings before interest of €2.3 billion, meeting analysts’ expectations but failing to inspire investor confidence.
Elsewhere, traders are closely watching Sweden’s Riksbank as it prepares to announce its latest interest rate decision later today. Economic data releases, including Germany’s factory orders, U.K. new car sales, and the eurozone’s purchasing managers’ index (PMI), are also expected to influence sentiment as investors weigh the balance between slowing growth and persistent inflation across the region.
source: CNBC