European equities mixed amid tech slump

The pan-European STOXX 600 index was little changed at 635.16, up 0.08%

European equities were mixed on Wednesday, struggling for momentum as a bruising worldwide technology rout kept risk appetite firmly in check.

The pan-European STOXX 600 index was little changed at 635.16, up 0.08%. Germany’s DAX closed down 0.7%.

France’s CAC 40 edged up 0.5%. Italy’s FTSE MIB dropped 0.7%, while London’s FTSE 100 added 0.3%.

The session follows a sharp technology drawdown that dragged the benchmark to a more than one-week low on Tuesday.

FOMO was replaced with a fear of being burnt if the now expected chunky earnings numbers don’t continue to surge, Danni Hewson, head of financial analysis at AJ Bell.

Post-IPO stocks often enter a period of volatility as the market gets to grips with the new entrant, some investors rush to cash out, and others assess at what price they are willing to jump in, she said.

The European Central Bank remains backed into a corner, forced to sustain higher borrowing costs to counter the persistent inflationary hangover left by recent geopolitical disruptions in the Middle East.

British markets are pricing in an entirely separate layer of unsystematic risk. Aside from navigating a stagnating economy and a Bank of England that chose to stand pat on rates, UK investors are now digesting significant political upheaval following the sudden resignation of Prime Minister Keir Starmer.

Among individual stock share moves, Segro climbed almost 19% after rejecting a $16 billion bid by Prologis.

Saipem rose 4% after gaining Brazilian approval of merger with Subsea7.

Rheinmetall plunged 17% after a report said that the German government could cancel a key contract with the defence group in favour of TKMS.

The selloff dragged down European aerospace and defence peers more broadly, with Renk Group and Hensoldt each dropping more than 6%, while Thales declined 1.8%.