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European shares fall 2% to their lowest level in a week due to the collapse of the technology sector and Chinese fears
collapse of the technology sector and Chinese fears
European shares tumbled to their lowest levels in a week on Tuesday, as rising government bond yields negatively affected high-growth technology shares, while signs
Fresh on the slowing Chinese economy to put pressure on investor sentiment.
The pan-European Stoxx 600 index fell 2.2 percent, its biggest drop in one session in more than two months, as a jump in US Treasury yields indicated that investors were bracing for higher interest rates and permanent inflation risks.
Technology shares fell 4.8% to a two-month low after Wall Street peers continued to sell.
These stocks are particularly sensitive to expectations of higher interest rates as their value is highly dependent on future earnings, which are drastically reduced when interest rates rise.
Meanwhile, data showed profit growth of Chinese industrial companies slowed for the sixth month in August, at a time when an unfolding electricity crisis became a growing threat to production and profits.
The German DAX index fell 2.1%, the French CAC 40 index fell 2.2%, and the British FTSE 100 index fell 0.5%.
