Tech stocks hurt STOXX 600, ASML logs biggest one-day drop in 26 years
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Updated at 1600 GMT
By Paolo Laudani, Ankika Biswas and Johann M Cherian
Oct 15 (Reuters) -European shares postedtheir biggest one-day drop in over two weeks on Tuesday, weighed by technology stocks after chip equipment maker ASML's third-quarter results were leakedand showed a disappointing annual sales forecast.
The pan-European STOXX 600 index .STOXX ended 0.8%lower, with tech stocks .SX8P falling6.5%inthe sector's biggest one-day drop since October 2020.
The euro zone blue-chip index .STOXX50E slid 1.8%,its biggest one-day drop in over two months.
ASML ASML.AS lost 15.6%, the stock'sbiggest single day drop since June 1998, after the companyreported weak quarterly bookings and trimmedits 2025 sales forecasts. The newswas leaked ahead of its scheduled release on Wednesday.
"A lot of investors got carried away on the AI (artificial intelligence) excitement and now we're seeing companies like ASML looking ahead and finding an equilibrium," said Danni Hewson head of financial analysis at AJ Bell.
"There's going to be an awful lot of focus on the other earnings updates of the likes of Nvidia NVDA.O to see whether or not this weakness is replicated in other parts of the sector."
In the U.S. the tech-heavy Nasdaq Composite Index .IXIC fellnearly 1%.
The STOXX 600 has climbed around 8.8% so far this year, but lags the S&P 500 index .SPX, which has scoreddouble-digit gains led by AI optimism.
Germany's benchmark index .GDAXI closed 0.1% lower after hittinga record high in the session.
Energy stocks .SXEP slumped nearly 3.3%as oil prices slid 5% after a media report said Israel will not strike Iran's oil facility, easing fears of supply disruptions.
Investors' key focus for the week is the European Central Bank's monetary policy decision on Thursday. It is widely expected to trim rates further by 25 basis points followingrecent data such as September's bigger-than-expected fall in French inflation andthe euro zone's worsening economy.
Among gainers, shares of Ericsson ERICb.ST rose 10.8% after the Swedish telecommunications company reported third-quarter core earnings and sales above expectations. The sector .SXKP jumped nearly 2%.
Bellway BWY.L surged 8.3% as the UK homebuilder said itexpects to construct at least 11% more homes in the 2025 financial year.
TotalEnergies TTEF.PA lost 4.8% after the French oil powerhouse said its third-quarter downstream results are expected to sharply decrease due to lower refining margins in Europe and elsewhere.
Deutsche Bank DBKGn.DE fell 2.6% as itsoffering of some 16 million shares was priced at 16.01 euros apiece, a bookrunner for the transaction said.
Reporting by Paolo Laudani in Gdansk, Ankika Biswas and Johann M Cherian in Bengaluru; Editing by Sherry Jacob-Phillips and Richard Chang
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