European Stocks Struggle Amid Geopolitical Strains and Tech Sector Slump

Europe's STOXX 600 index fell amid geopolitical uncertainties, affected by tensions from the Ukraine-Russia conflict and economic policies tied to Trump's presidency. Chip stocks declined following Nvidia's revenue forecast, although Soitec managed gains. Overall, personal goods, retail, and autos suffered the most substantial losses.

Europe's major stock index took a hit on Thursday, driven by heightened geopolitical tensions and disappointing signals from the tech industry, led by chip giant Nvidia's revenue forecast.

The STOXX 600 index dropped by 0.1% by mid-morning in London, marking its fifth consecutive decline, fueled by the ongoing Ukraine-Russia conflict and repercussions from Donald Trump's recent U.S. Presidential win. While safe havens such as gold and the Swiss franc saw gains, the dollar remained in limbo awaiting clearer economic policies from the Trump administration.

Chip makers like ASML, Infineon, and ASM International faced pressure after Nvidia predicted its weakest revenue growth in nearly two years. Conversely, Soitec provided some relief with a substantial 14% rise following its positive financial report. Meanwhile, industries including personal goods, retail, and autos faced notable declines, highlighted by substantial downturns in shares of companies like CTS Eventim and JD Sports Fashion.

(With inputs from agencies.)