FX.co ★ European Stocks Extend Downturn

European stocks slid to close at approximately one-month lows on Tuesday, continuing a downward trend from previous sessions. This follows a global decline in equity performance, driven by concerns of an overvalued global tech sector and sustained high interest rates from the Federal Reserve, reducing investor appetite for riskier assets. The STOXX 50 declined by 1.9% to settle at 5,540, while the STOXX 600 experienced a 1.8% drop to 561. Losses were widespread across major sectors in the Eurozone, with banks such as Santander, Intesa Sanpaolo, and ING each falling over 3%, leading the decline. Consumer cyclical stocks and the tech industry also experienced significant pressure, with companies like Adidas, Ferrari, Adyen, and Infineon falling more than 2%. The tech sector was under particular scrutiny as forthcoming results from Nvidia, expected after tomorrow’s market close, are anticipated to shed light on AI infrastructure demand for upcoming quarters, potentially revealing further market overvaluation. In contrast, Roche surged 6.8% following promising late-stage trial results for its breast cancer medication, Giredestrant.