European Equities Dip Amid Tech and Defense Sector Pressures
European equities experienced a slight decline on Wednesday as tech and defense stocks weakened. The STOXX 600 index dropped 0.2%, with the UK's FTSE 100 also down following inflation data. Concerns about an AI stock bubble and interest rates affected markets, as major central banks prepared for the Jackson Hole summit.
European equities retreated on Wednesday, stepping back from a five-month closing high as tech stocks followed the downward trend of their Wall Street counterparts, and the defense sector faced continuous pressure. The pan-European STOXX 600 index was down 0.2% by 0830 GMT, with most major bourses showing losses.
In the UK, the FTSE 100 index declined by 0.2% following news that inflation climbed to 3.8% in July, reaching its highest level since early 2024, aligning with the Bank of England's forecasts. Shares of European defense-related companies fell 0.6%, hit by expectations of a Ukraine peace accord.
The tech sector saw a 0.4% decrease after U.S. tech stocks declined due to concerns about an AI stock bubble and interest rate uncertainties, particularly ahead of the Jackson Hole summit where Federal Reserve Chair Jerome Powell is set to speak. Meanwhile, the ECB noted that the EU-U.S. trade deal remains close to its assumed baseline.
(With inputs from agencies.)
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