Chip Markets Threatened by Tariff Turmoil: European Shares Extend Losses

European shares fell, driven down by semiconductor stocks after ASML warned of increased uncertainty due to U.S. tariffs. The technology sector was the hardest hit, with ASML shares dropping significantly. Broader economic fears led to declines across the index, despite some gains in the oil and gas sector.

On Wednesday, European shares ended the trading session on a lower note, primarily dragged by semiconductor stocks. This decline came after ASML, the largest chip-making equipment supplier globally, raised concerns over U.S. tariffs escalating uncertainties for 2025 and 2026.

The STOXX 600 index dipped 0.2%, recovering slightly from deeper earlier losses. The technology sub-index suffered the most, dropping by 2%, with ASML's shares plummeting by 5.2%, exerting the most pressure on the benchmark index.

U.S. firm Nvidia added to the sector's woes, announcing a $5.5 billion charge regarding its advanced chips in China amidst escalating geopolitical tensions. Investors shifted focus to the earnings season, anticipating a challenging outlook for European corporate profits amid a volatile economic landscape.

(With inputs from agencies.)