European Shares Dip Amid Waning Stimulus Rally and Tech Stock Declines

European shares opened lower on Wednesday due to a fading rally sparked by China's stimulus package and declines in technology and oil stocks. SAP dropped 3.5% following US investigation reports, further weighing on the technology sector. Valmet Oyj rose 9.2% after securing a significant order in Brazil.

European shares opened lower on Wednesday after enthusiasm from China's stimulus package began to wane, and technology and oil stocks added to overall market losses.

The pan-European STOXX 600 index dropped 0.3% to 518.06 at 0712 GMT, following a near 1% gain in the previous session. Chinese stocks continued their upward move for a second day on stimulus hopes, while other Asian markets lacked clear direction.

SAP shares fell 3.5% after reports emerged of a US investigation into alleged price-fixing, significantly impacting the technology sub-index, which declined by 0.8%. The oil and gas sector also fell by 0.9% due to concerns that China's stimulus would not sufficiently boost demand.

France's CAC 40 index decreased by 0.7% after a previous 1% gain, despite stronger consumer confidence data in September. Sweden's producer price index climbed 0.6% in August compared to July, while its OMXS 30 index remained flat.

Valmet Oyj shares surged 9.2% following news of a substantial order exceeding 1 billion euros from Brazil.

(With inputs from agencies.)