Nov 3 (Reuters) – Europe’s benchmark equities index fell on Tuesday with tech stocks leading declines as concerns about the outlook for the AI trade and reports on escalating tensions in the Middle East weighed on risk appetite.
The pan-European STOXX 600 index slipped over 0.5% to 645.8 points, with benchmarks in Germany, Spain and Italy down about 0.9% by 0817 GMT.
The US carried out strikes on Iran’s Qeshm Island in the Strait of Hormuz, a US official said, a day after Iran signalled openness to peace talks and President Donald Trump also indicated that he might be open to holding off on any strikes on Tehran until after the midterm elections.
Brent crude prices gained 1.6% to over $100-a-barrel, bouncing back from a 7% fall in the previous session.
Technology led sectoral declines with a 2% fall with Aixtron and ASML down 3.5% and 2.8%, respectively, while Siemens Energy shed 2.4%.
Asian tech benchmarks came under pressure earlier in the day as investors reassess the AI trade, following disappointing results from major US hyperscalers in the previous week. Investors are concerned that the enthusiasm around developing the technology has made stocks in the sector overvalued in recent years.
Tech giant Apple’s dour gross margin forecast for the crucial holiday quarter as a result of rising memory-chip costs also weighed on risk appetite.
Bucking the trend, Bayer gained 6% and lifted the broader healthcare sector after the German pharmaceuticals and agriculture group raised its 2026 profit outlook.
(Reporting by Johann M Cherian in Bengaluru; Editing by Sonia Cheema)
