Story
European Shares Decline as Tech Sell-Off, Mideast Tensions Spook Investors

Summary
European markets opened lower on Friday, pressured by a global downturn in technology stocks and escalating geopolitical risks in the Middle East. The STOXX 600 is on track for a weekly loss as investors rotate out of high-valuation sectors.
European stocks declined on Friday morning, putting the regional benchmark on course for a weekly loss as a global sell-off in technology shares and rising geopolitical tensions in the Middle East dampened investor sentiment.
The pan-European STOXX 600 index was down 0.6% to 639.94 points by 0707 GMT, according to a Reuters report. The broad-based decline signals a cautious end to a week marked by sector rotation and growing risk aversion.
Tech Sector Leads Declines
The technology sector was the hardest hit, dropping 2.3% and leading sectoral losses. The sell-off in Europe mirrored weakness in Asian and Wall Street tech stocks, driven by concerns over elevated valuations after a strong rally earlier this year.
Key semiconductor stocks were under significant pressure despite recent strong forecasts from industry leaders:
Ad- ASML Holding and ASMI both dropped by more than 4%.
- French chipmaker Soitec saw its shares fall 3.6%.
Geopolitical Jitters and Market Movers
Broader market caution was fueled by reports that Iran had launched new attacks on U.S. facilities in the Gulf, a development that contributed to a rise in oil prices. This geopolitical uncertainty is prompting investors to reassess risk exposure.
Among individual stocks, Britain's Burberry slipped 1.7%. While the luxury group reported a continued sales recovery aided by the U.S. and China, it noted that the Middle East conflict was weighing on tourist spending in Europe. In contrast, shares of Swedish defense group Saab rose 3.4% after it reported a larger-than-expected increase in second-quarter operating profit, citing strong demand and order intake.
Read next
More on Stocks
Meta's New AI Agent Triggers Broad Selloff in Financial, Travel, and Telecom Stocks
A new AI assistant from Meta capable of autonomously switching services for users has sparked a significant selloff in sectors that rely on customer inertia, including banks, insurers, and subscription-based companies.

Meta CEO Mark Zuckerberg to Attend White House Dinner for China's Xi Jinping, Bloomberg Reports
Mark Zuckerberg is reportedly set to join other technology executives at a White House state dinner for Chinese President Xi Jinping. The meeting comes amid complex U.S.-China relations and ongoing market access challenges for American tech firms.

Legal Tech Startup Legora in Talks for $300 Million Raise at $8.5 Billion Valuation, Bloomberg Reports
AI-powered legal software firm Legora is reportedly in discussions to raise at least $300 million in a new funding round. The deal would value the company at approximately $8.5 billion, a significant increase from its last valuation five months ago.

Abenojar Tungsten Eyes London IPO Amid Europe's Push for Critical Metals
Spanish miner Abenojar Tungsten SA is reportedly considering a public listing in London, aiming to capitalize on Europe's strategic efforts to secure its own supply of the critical metal.