Europe Markets

European markets close sharply lower as tech sector dives 3.8%; earnings in focus

Key Points
  • European tech shares tumbled 3.8% to lead the losses Tuesday amid fears over high valuations and the reopening of economies.
  • Earnings on Tuesday came from the likes of Infineon, Deutsche Post DHL Group and Siemens Energy.

LONDON — European stocks fell sharply Tuesday afternoon, led by declines in the tech sector, as investors monitored global recovery prospects and a fresh round of corporate earnings.

The pan-European Stoxx 600 closed down by 1.5% provisionally. Tech shares tumbled 3.8% to lead the losses amid fears over high valuations and the reopening of economies after tough coronavirus restrictions that heavily benefited tech.

On Wall Street, U.S. stocks also fell as investors jockeyed to pick which shares to ride and which shares to dump with the market at all time highs.

Traders also continued to monitor the Covid-19 situation in India as it shows little signs of slowing. The World Health Organization said last week that one in every three new coronavirus cases globally is being reported in India.

In the U.S., states continued to relax pandemic restrictions amid the vaccine rollout. New York Gov. Andrew Cuomo announced that most capacity restrictions will be lifted across New York, New Jersey and Connecticut, while 24-hour subway service will resume in New York City later this month.

Never seen current situation like this before: Infineon CEO

Saudi Aramco on Tuesday reported stronger-than-expected first-quarter profits on the back of resurgent oil prices, with net income rising to $21.7 billion from $16.7 billion for the same period last year.

Earnings in Europe on Tuesday came from the likes of Infineon, Deutsche Post DHL Group and Siemens Energy.

Stocks on the move

Looking at individual stocks, Danish jeweler Pandora jumped almost 6% to the top of the Stoxx 600 after reporting a surge in first-quarter sales and hiking its full-year guidance.

French aircraft manufacturer Dassault Aviation was another top gainer Tuesday, with its shares climbing 3.4% after Egypt announced that it had placed an order for 30 Rafale fighter jets.

Online growth is a result of retaining customer loyalty, Pandora CEO says

At the bottom of the European blue chip index, German software firm Teamviewer fell 12.4%, leading a sell-off in tech shares. Swedish Orphan Biovitrum fell 6% after the pharmaceutical group reported a 21% year-on-year fall in revenue for the first three months of 2021.

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- CNBC's Ryan Browne and Yun Li contributed to this market report.