European Shares Slip Amid Tech Sector Woes Despite Positive Corporate Updates

European shares opened lower on Thursday due to a decline in tech stocks, mirroring the Asian markets. However, upbeat corporate updates helped to limit losses. The pan-European STOXX 600 fell by 0.7%, with the tech sector and basic resources dropping significantly. Notably, Beazley and Entain saw significant gains.

European shares opened lower on Thursday, reflecting the downbeat sentiment in Asian markets, as the tech sector weighed heavily on the benchmark. Despite this, a series of positive corporate updates mitigated the overall losses.

The pan-European STOXX 600 index was down 0.7% by 0710 GMT. Basic resources were the hardest hit, dropping 1.5%, influenced by a subdued copper market amid high inventories and a pessimistic global growth outlook.

The technology sector saw a decline of 1.3%, following a similar trend in Asian tech stocks. In contrast, Allianz shares increased by 1% after the company reported a 7.5% rise in second-quarter net profit, exceeding expectations and affirming its full-year target. Deutsche Telekom rose 1.3% after reporting a 7.8% increase in second-quarter core earnings, aligning with analyst forecasts. Zurich Insurance faced a 3.3% drop despite surpassing profit predictions.

Beazley experienced a significant rise of 10.2% as the British insurer upgraded its combined ratio forecast for 2024 following a near doubling of its first-half pre-tax profit to $728.9 million. Meanwhile, Entain saw a 9.4% surge after the gambling group raised its annual net gaming revenue and earnings forecast due to a stronger-than-expected second-quarter performance.

(With inputs from agencies.)