European stocks edge lower as ECB holds rates

The Stoxx 600 gauge was down 0.2% by the close in London, with technology stocks extending the previous session’s slump due to concerns over more severe US restrictions on semiconductor companies. Picture: Getty 

European stocks dropped today after the ECB left interest rates unchanged.

The Stoxx 600 gauge was down 0.2% by the close in London, with technology stocks extending the previous session’s slump due to concerns over more severe US restrictions on semiconductor companies.

Travel and leisure stocks also lagged, with airlines and hotels dropping after United Airlines’s results missed expectations. Cars and personal care sectors outperformed. In the US, initial jobless claims increased by 20,000 to 243,000 in the week ended July 13 so a softening labour-market could bolster the outlook for rate cuts.

Sentiment toward the tech sector did not recovered after Taiwan Semiconductor Manufacturing’s positive earnings update.

The world’s largest maker of advanced chips beat lofty analyst estimates, thanks to growing AI investment around the world.

Meanwhile, European earnings continued to roll in. Truckmaker Volvo rose after it reported better-than-expected profits for the second quarter.

Nokia Oyj slumped as sales missed analyst estimates in the second quarter.

Publicis rose after the owner of advertising agencies boosted its full-year organic sales growth guidance.

Tech company earnings will be next on investors’ radars as the US second-quarter earnings season picks up steam.

“Risks in the technology sector got pointed out yesterday, with continuing trade issues between the US and China,” said Paul Nolte, senior wealth adviser and market strategist for Murphy & Sylvest.

Bloomberg and Reuters