European Shares Hit by Chip Stock Decline Amid Economic Uncertainty
European shares fell, impacted by a sharp decline in chip stocks after ASML's revenue warning and potential changes in U.S. Federal Reserve leadership. The STOXX 600 index closed down for a fourth day. Economic concerns were exacerbated by profit warnings from key companies and looming tariff talks.
On Wednesday, European shares saw a decline, with chip stocks notably impacted following ASML's revenue forecast warning. Concurrently, market sentiment soured amid reports of U.S. President Donald Trump considering the dismissal of Federal Reserve Chair Jerome Powell.
The pan-European STOXX 600 index ended 0.6% lower, marking its fourth consecutive day of losses. Notably, ASML experienced a significant 11.4% drop after cautions of limited growth by 2026. This news triggered declines among other semiconductor firms such as BE Semiconductor, ASMI, and STMicroelectronics.
Further compounding market unease, European auto stocks fell, with Renault plummeting 18.5% after issuing a profit warning. The gloomy outlook extended to Fuchs, which cut its future forecasts, and coincided with renewed concerns over tariff talks and deteriorating European corporate health indicators.
(With inputs from agencies.)
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