European Stocks Slide as Technology Selloff Spreads Around World

Coutts Says 'Stay the Faith' on U.K. Stocks, Pound

European stocks fell as investors dumped technology shares while assessing political events in the U.K. and France.

The Stoxx Europe 600 Index dropped 1 percent at the close. Technology shares led the declines, following their peers in U.S. and Asian markets, with the European tech sector falling the most in a year. The Stoxx 600 rose 0.3 percent Friday, boosted by gains in the U.K.’s FTSE 100 Index.

  • Technology shares in the Stoxx 600 Index lost 3.6 percent in the biggest retreat since June 2016.
  • French President Emmanuel Macron’s year-old party, Republic on the Move, won 32.3 percent of the vote alongside its centrist ally MoDem, more than 13 percentage points ahead of the Republicans’ group, according to the Interior Ministry’s final vote count.
  • “We prefer Europe ex-U.K. to U.K. equities, with better economic momentum in Europe and higher political risk now in the U.K. post-election,” Citigroup Inc. strategists wrote in a note.
  • Italy’s FTSE MIB Index lost 1 percent. Italy’s opposition Five Star Movement suffered heavy setbacks in local elections on Sunday.
  • Traders are pricing in a 93 percent chance that the Federal Reserve increases interest rates at this week’s meeting, trading in fed fund futures indicates.

— With assistance by Elena Popina

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