European equity markets closed lower on Tuesday, with the broad Stoxx 600 index declining 0.6% as selling pressure in the technology sector weighed on sentiment.
The downturn marked a sharp reversal from Monday’s session, when European shares had staged a broad-based relief rally following reports of a de-escalation framework between the United States and Iran.
The shift in tone suggests that geopolitical tailwinds are being overshadowed by sector-specific profit-taking.
While the London market managed to buck the broader European trend, most continental indices struggled to hold gains as traders reduced exposure to high-multiple tech stocks.
This rotation highlights the fragility of the recent risk-on mood, which had been driven largely by hopes for reduced Middle East tensions.
The market’s quick pivot underscores the delicate balance between geopolitical optimism and fundamental valuation concerns.