European stocks stabilise after tech-driven rout

European stocks steadied on Wednesday after one of the worst market routs this year, with investors turning to defensive healthcare stocks amid lingering concerns about growth and inflation. The pan-European STOXX 600 index rose 0.8% after shedding 2.2% on Tuesday in their biggest percentage daily decline since mid-July.

European stocks steadied on Wednesday after one of the worst market routs this year, with investors turning to defensive healthcare stocks amid lingering concerns about growth and inflation.

The pan-European STOXX 600 index rose 0.8% after shedding 2.2% on Tuesday in their biggest percentage daily decline since mid-July. In a widespread risk-off sentiment, global stocks tumbled in the previous session as government bond yields surged on growing expectations of faster interest rate hikes and steered investors away from high-growth technology stocks.

European tech sector remained under pressure, up just 0.5% after losing 4.8% on Tuesday. ASML Holding NV, one of the key suppliers to computer chip makers, slipped 1% despite raising financial targets.

Casting a shadow on the sector, U.S. chipmaker Micron Technology warned overnight that shipments for its memory chips were set to dip as its customers making personal computers face shortages of other parts. British drugmaker AstraZeneca gained 2.3% after it said its newly acquired Alexion division will purchase the remaining equity in drugmaker Caelum Biosciences in a deal that could be worth up to $500 million.