European stocks drop on tech selloff

The STOXX 600 declined 0.2 per cent to 603.83, logging its second straight day in the red

European stocks dropped on Thursday, dragged down by a selloff in tech and disappointing updates from several heavyweight retailers, while weaker gold and copper prices weighed on broader market mood.

The pullback cools the early‑2026 rally in the pan‑European STOXX 600, which notched a run of record highs this year, underscoring that earnings season may be the next big test of investors’ appetite for risk.

The index declined 0.2 per cent to 603.83, logging its second straight day in the red. Technology stocks were the biggest drag on the index, dropping 2.2 per cent.

Retail stocks slid 0.6 per cent, snapping a four-day winning streak, while miners declined 1.6 per cent as gold and copper prices dropped.

The STOXX aerospace and defence index, however, hit an all-time high.

Elsewhere, Puma climbed 8.5 per cent after a report said China’s Anta Sports Products has offered to buy 29 per cent of the sportswear firm from France’s Pinault family.

UK retail stocks slipped as latest trading updates exposed a still-fragile consumer backdrop: shoppers are buying essentials, but thought twice about spending a lot on clothing and gifts over Christmas.

Shares of Associated British Foods slid 14 per cent to their lowest since April after the Primark owner flagged weaker annual profits.

The downbeat mood spread to Greggs, which said consumer confidence remains subdued, sending its shares 6.5 per cent lower. Tesco slipped 6.7 per cent after reporting third-quarter sales.

In contrast, Marks & Spencer bucked the trend, gaining 5 per cent after reporting robust Christmas demand for its premium food range, even as fashion and homeware sales weakened.