European stocks fell due to macroeconomic pessimism. The recovery of luxury values

Written by Sruthi Shankar and Anika Biswas

(Reuters) – European stocks fell on Thursday as concerns about the US debt ceiling and a global economic slowdown offset early optimism about strong corporate results, while luxury stocks rose and stabilized after a sharp fall.

– The European Stoxx 600 index lost 0.3 percent, and fell nearly 2.7 percent in three consecutive days, due to recent losses in luxury securities and the lack of progress in talks to raise the debt ceiling and avoid default.

“The US debt ceiling is in the news right now – it’s very difficult to overcome the uncertainty it brings to the markets,” said Helen Jewell of BlackRock Equities.

* European stocks came under strong selling pressure this week as investors worried about a possible US debt default and skyrocketing inflation in the UK, after a strong earnings season that boosted many regional stocks to all-time highs.

* Energy stocks fell further on falling crude oil prices, while big luxury companies took a breather and helped avoid bigger losses in the Stoxx 600.

* The tech sector was the most profitable thanks to a boost from European chipmakers, after Nvidia Corp reported quarterly revenue forecasts 50% above estimates and said it was increasing supply to meet rising demand related to artificial intelligence.

BE Semiconductor rose 7.6%, while ASM International rose 8.6%, and ASML Holdings rose 5%. Bank of America analysts see both ASM and ASML as benefiting from the growing adoption of AI.

Germany’s DAX index lost 0.3 percent after data showed Europe’s largest economy contracted in the first quarter of 2023 compared to the previous three months, indicating a recession.

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(Edited in Spanish by Carlos Serrano)

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