Europe Markets: European stocks tumble, led by tech stocks, renewables after Wall Street rout

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European stocks fell sharply on Friday led by technology, which echoed a late-session selloff on Wall Street. Profit warnings in the renewables sector sent the shares of two Siemens subsidiaries tumbling.

The Stoxx Europe 600 index
SXXP,
-1.44%

fell 1.4% to 476.48, following a 0.5% gain on Thursday. The index is poised for a nearly 1% drop this week. The German DAX
DAX,
-1.55%

fell 1.4%, with a similar loss for the CAC 40
PX1,
-1.45%
,
while the FTSE 100 index
UKX,
-1.03%

dropped 1%.

U.S. stock indexes surrendered an early rebound to turn lower in Thursday’s final hour of trading, a repeat of Wednesday’s volatile session. The worst losses were seen for the Nasdaq Composite
COMP,
-1.30%
,
which fell 1.3%, pushing further into correction territory.

Stocks have struggled at the start of the year amid a selloff in bonds as investors look ahead to tighter policy from Federal Reserve. The yield on the 10-year
TMUBMUSD10Y,
1.791%

fell 1 basis point to 1.79%, while the yield on the German 10-year bund
TMBMKDE-10Y,
-0.049%
,
which pushed into positive territory for the first time in three years this week, slipped 1 basis point to negative 0.041%.

A bumpy start to earnings season has also added to the gloom, with Netflix
NFLX,
-1.48%

shares dropping 20% late Thursday, after the streaming giant’s subscriber number outlook fell far short of expectations. S&P 500 futures
ES00,
-0.20%

were pointing lower, while Nasdaq-100 futures
NQ00,
-0.52%

fell 0.6%.

While tech led the losses in Europe, few sectors showed any green. Among chip names in Europe, heavily weighted ASML Holding
ASML,
+1.09%

ASML,
-2.78%

dropped 3%, and ams
AMS,
-1.29%

shares fell 3%, while business software group SAP
SAP,
+0.16%

SAP,
-1.46%

was down 1.2%.

Energy names were under pressure as a risk-off mood hit oil prices
CL00,
-2.08%

BRN00,
-1.88%
,
and BP
BP,
-1.82%

BP,
-2.31%

and Royal Dutch Shell
RDS.A,
-2.58%

RDSA,
-1.28%

shares fell 1% each.

The renewables sector was getting hammered, after Siemens Gamesa Renewable Energy
SGRE,
-13.46%

late Thursday cut its guidance for the fiscal year, swinging to an operating loss in the first quarter on continued supply-chain woes. Shares slumped 14%.

The warning from its Spanish subsidiary prompted Siemens Energy
ENR,
-11.29%

to lower its targets for fiscal 2022, and shares tumbled 10%. Those of rival Vestas Wind Systems
VWS,
-7.26%

dropped 6%.

Elsewhere, shares of Airbus
AIR,
-1.52%

dropped 1.5%, after the multinational aerospace corporation canceled a plane order from state-owned carrier Qatar as the two companies have been in dispute for months over surface degradation on A350 jets.

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