European Markets Tumble Amid Tech Uncertainty and Export Curbs

European markets slipped as corporate profit concerns grew, particularly affecting the tech sector. Nvidia is facing significant charges due to U.S. export restrictions to China, while ASML warned of tariff-related uncertainties. The STOXX 600 index and other regional indexes recorded declines, with earnings outlooks worsening.

European shares took a downturn on Wednesday, marking a departure from the week's strong start as apprehensions over corporate profits intensified. This comes on the heels of news that Nvidia is expected to incur billions in charges due to U.S. export restrictions to China.

The technology sector's troubles were compounded by ASML's announcement that tariffs have clouded its forward-looking projections for 2025 and 2026, resulting in a 7.4% drop in its share price. The pan-European STOXX 600 index registered a 0.9% decrease by 0706 GMT, following two days of market gains, albeit with less volatility than the previous week.

Furthermore, Germany, France, Spain, and UK indexes also registered declines ranging from 0.3% to 0.8%. Nvidia is contending with a $5.5 billion charge associated with its most sophisticated chip permitted for sale in China, as the U.S. endeavors to maintain a leading position in the AI sector. The European technology sector led the downturn with a 3.2% fall, while analysts brace for a more pronounced 3% drop in first-quarter corporate earnings amidst ongoing tariff uncertainties introduced during the Trump administration. Attention now turns to the European Central Bank's policy meeting on Thursday, with market speculations pointing to a possible 25-basis-point rate cut.

(With inputs from agencies.)