Europe open: Shares slide after falls in Asia, US
European stocks opened sharply lower on Wednesday following losses overnight in Asia and the US.
The pan-European Stoxx 600 index was down fell 1.05% in early deals. All major regional bourses were lower. In the US, investors turned to tech stocks, propelling the Nasdaq index to new highs.
“Relatively unaffected by the vagaries of the return to normality due to the Delta variant, consumers continue to use technology regardless,” said Interactive Investor head of markets Richard Hunter.
“As such, big tech stocks are edging towards becoming the ‘new defensives’, as uncertainty abounds elsewhere. In addition, investors switched once more from value to growth, propelling the Nasdaq to a fresh record closing high.”
In equity news, Swedish investment company EQT fell 5.9% after a share placing deal. Car maker Stellantis dropped 2.5% after Dongfeng Motor Hong Kong said it had sold shares in the carmaker for about €600m.
French drugmaker Sanofi slipped 1.4% after it agreed to buy US biopharmaceutical company Kadmon Holdings in a $1.9bn deal.
British industrial technology company Smiths Group rose 3.8% after it agreed to sell its medical unit to US-based ICU Medical for $2.4bn.