European equity markets closed lower on Tuesday, weighed heavily by a sweeping selloff in the semiconductor sector that originated in Asian trading sessions.
The Milan Stock Exchange fell 0.95%, with STMicroelectronics among the key drags on the benchmark, while the broader European tech complex retreated from earlier gains as selling pressure intensified in chip-focused funds.
The downturn was sparked in Asia by Samsung Electronics, which saw its shares plunge 8% despite reporting strong quarterly financial results.
The downturn was sparked in Asia by Samsung Electronics, which saw its shares plunge 8% despite reporting strong quarterly financial results.
The counterintuitive drop in the South Korean giant’s stock triggered a contagion effect across the semiconductor supply chain, eroding investor confidence in the sector’s near-term momentum.
Asian technology shares fell sharply on Friday, driven by concerns that rising memory chip costs are forcing major manufacturers to raise prices, potentially curbing consumer demand for electronics.
The sell-off marks a sharp reversal for the sector, which had been a primary driver of market gains in recent months.