European shares suffered their worst weekly performance for April in the wake of a global sell off that sent technology stocks crashing.
Chip maker ARM Holdings, whose designs are utilized in some Apple’s smart devices, lost 3.8%. Suedzucker AG hit lows it’s not witnessed at least since 1998 after announcing annual profits and sales projections that fell short of estimates. LVMH Moet Hennessy Louis Vuitton SA increased 5.7% as it reported the fasted growth in luxury-goods sales.
The Europe Stoxx 600 Index plunged 3.1% in the week to 328.77, the worst decline since March 14. Shares of technology firms sparked a drop in US equities amid concerns that stocks were overvalued. European stocks hit a peak a last week that was last recorded six years ago, as per Bloomberg reports.
“If we’re trying to tease out what it was about this week it could be a sense of following where the U.S. is going and also there have been some questions about some of these heroic valuations,” said strategist Francis Hudson of Edinburgh-based Standard Life Investments Ltd. He added that the stock market is showing discriminatory tendencies.
Blue-chip stocks lost in every market in Western Europe this week, with the exception of Iceland. Germany’s DAX slid 3.9% as the FTSE 100 of Britain lost 2%. CAC 40 of France plunged 2.7%.
A measure of technology shares in the Stoxx 600 sunk 4.1%. United Internet AG dropped 12% as Logic International SA, the largest maker of computer mice in the world, shrunk 9.2%. The second-largest maker of semiconductors Infineon Technologies AG slumped 6.9%.
Companies in the banking and travel and leisure sectors lost the most this week among 19 industry groups in the Stoxx 600.
Marketwatch quotes analyst Michael Hewson of CMC Markets as saying that European stocks will go in the same direction as the S&P 500. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
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