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(Bloomberg) -- European stocks tumbled on Tuesday, with the tech sector suffering its biggest drop since late October, mirroring a selloff on the Nasdaq. Losses accelerated after U.S. Treasury Secretary Janet Yellen warned that rates may have to rise to prevent the economy from overheating.
The Stoxx Europe 600 Index closed down 1.4%, with almost all sectors in the red. Tech stocks plunged 3.7%, with ASML Holding NV and Infineon Technologies AG among the biggest decliners. Ferrari NV led carmakers lower after delaying a longstanding earnings goal because of the pandemic.
Lockdown winners such as HelloFresh SE slumped as investors looked toward prospects of economic reopenings after the meal-kit maker posted results that met estimates. Germany’s DAX Index was the worst performer among Europe’s major benchmarks, with today’s 2.5% drop its worst since late December.
Stocks are tumbling after a tepid April, which saw the region’s benchmark trading in a range after surging to an all-time high. While shares initially rose on optimism about a proposed easing of travel restrictions in the region, they reversed gains later, accelerating declines alongside U.S. equities.
Meanwhile, German remote-access software firm TeamViewer AG slumped despite better-than-expected earnings, as the plans to ease restrictions weighed on the stock. Online pharmacies Shop Apotheke Europe NV and Zur Rose Group AG also declined.
Pandemic Winners Fall Amid Travel Plans, Post-Earnings Drops
“We’re at really high levels, and we need more than just good wording from the companies to go further,” Guillermo Hernandez Sampere, head of trading at MPPM EK in Eppstein, Germany, said in an interview. “It feels like every report is raising guidance -- at least that limits perceived downside.”
The old adage of “sell in May and go away” is something to set one’s mind to this year, he said.
Danish jeweler Pandora A/S was boosted by an earnings beat and guidance upgrade. Oil majors such as BP Plc and Total SE gained as oil advanced on optimism that the resumption of economic activity in the U.S. and Europe will underpin demand.
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