European stock markets are mixed due to the ongoing geopolitical risks and the selling pressure in technology stocks.
Geopolitical risks and developments in the technology sector affect the direction of global markets. The decline in investors’ interest in artificial intelligence stocks, which drove the markets to record levels, caused optimism in the technology sector to decrease in the markets.
The fact that US chip manufacturer Broadcom’s revenue forecast and chip sales outlook fell below expectations also stopped the sharp rises in technology stocks.
Despite the escalation of geopolitical tensions, the continued expectations that an agreement will be reached between the USA and Iran in the Middle East balanced the technology-induced sales pressure in the markets.
While inflation continues to be among the leading problems of the European economy, analysts said that inflationary pressures continue in the Eurozone due to cost pressure resulting from the war, and factories are forced to pass on the increasing costs to customers, which may have an upward impact on inflation in the Region in a few months.
Analysts said that the European Central Bank (ECB) is expected to increase the deposit rate at next week’s interest rate decision meeting, but stated that a week is a long time in the current geopolitical environment and instant developments may affect the Bank’s policy.
On the other hand, while the political uncertainty in the UK continues to be on the country’s agenda, risks related to the construction sector due to increasing energy costs and high interest rates due to the war in the country come to the fore.
With these developments, as of 10.30 in the European markets, the Stoxx Europe 600 indicator index is at 623 points, with a 0.2 percent decrease, and the FTSE 100 index in the UK is at 10,341 points, 0.2 percent below the previous closing.
In Germany, the DAX 40 index is at 24,886 points with a 0.2 percent loss of value, in Italy the FTSE MIB 30 index is at 50,137 points with a 0.1 percent loss, in France the CAC 40 index is at 8,253 points with a 0.1 percent increase and in Spain the IBEX 35 index is at 18,333 points with a 0.3 percent gain in value.
