European stocks slide more than 1% as tech stocks are hit hard

European equities took a sharp hit on Wednesday, with chip stocks losing the most in a tech-driven selloff that also left U.S. stocks in the red in the previous session.

How markets are moving

The Stoxx Europe 600 index
SXXP, -0.88%
flopped down 1.1% to 363.56. Only the utilities sector rose and technology sector fared the worst. That move will nearly wipe out Tuesdays 1.2% climb that was driven by easing concerns about a global trade war.

Germanys DAX 30
DAX, -1.24%
gave up 1.1% to 11,837.17 after Tuesdays rise of 1.6%. In Paris, the CAC 40 index
PX1, -1.14%
dropped 1.1% to 5,058.76.

Spains IBEX 35
IBEX, -0.84%
fell 1% to 9,377.70 and the U.K.s FTSE 100 index
UKX, -0.65%
lost 0.8% to 6,942.02.

See: Brace for more poor action by U.K. stocks, says worlds largest asset manager

The euro
EURUSD, -0.0887%
traded at $1.2398, slightly down from $1.2405 late Tuesday in New York.

Whats driving markets

Broadly hurting equities in Europe and in Asia
HSI, -2.50%
NIK, -1.34%
was the rout in tech stocks that led a sharp downturn on Wall Street on Tuesday. The Nasdaq Composite Index
COMP, -2.93%
slumped by 2.9%, with shares of Twitter Inc.
TWTR, -12.03%
sinking 12% on worries about its data business. Facebook Inc.
FB, -4.90%
, still embroiled in a customer data scandal, lost nearly 5%.

On Wednesday, the Stoxx Europe 600 Technology Index
FX8, -2.31%
was dragged down 2.7%, on course for its worst session since Feb. 8, according to FactSet data.

The tech sector, which has been at the forefront of Wall Streets run higher this year, was also weighed on by news that the U.S. is considering a ban on Chinese investment in certain sensitive technologies.

Reports this week that the U.S. and China are conducting behind-the-scenes trade talks helped European stocks surge on Tuesday.

Opinion: Who gets hurt in a trade war? Mostly not China

What strategists are saying

Stock markets are likely to remain explosively volatile and wildly unpredictable amid the ongoing trade drama between the U.S. and China, said Lukman Otunuga, research analyst at FXTM, in a note. While easing fears of a trade war initially supported risk sentiment, reports that the Trump administration may crackdown on Chinese investments into U.S. companies rekindled jitters. With the U.S.-China trade developments being a key theme driving markets, investors should expect the unexpected.

Stock movers

Tech names were at the bottom of the Stoxx 600 index, with chip maker and Apple
AAPL, -2.56%
iPhone supplier AMS AG
AMS, -8.44%
sinking 9.1% and chip maker STMicroelectronics NV
STM, -3.05%
off by 5%. Dutch semiconductor company ASML Holding NV
ASML, -4.17%
gave up 4.7% and Germany chip maker Infineon Technologies AG
IFX, -3.70%
off by 3.8%.

Subsea 7 SA
SUBC, -5.03%
fell 4.1% following a ratings downgrade of the oil-services provider to hold from buy at Jefferies. Backlog phasing and margin outlook drives material downgrades to our estimates, said analyst Mark Wilson in a research note.

Related Topics European Markets Europe Investing Stocks European Central Bank

Quote References SXXP -3.24 -0.88% DAX -148.97 -1.24% PX1 -58.22 -1.14% IBEX -79.90 -0.84% UKX -45.34 -0.65% EURUSD -0.0011 -0.0887% HSI -768.30 -2.50% NIK -286.01 -1.34% COMP -211.74 -2.93% TWTR -3.84 -12.03% FB -7.84 -4.90% FX8 -10.07 -2.31% AAPL -4.43 -2.56% AMS -9.50 -8.44% STM -0.72 -3.05% ASML -6.95 -4.17% IFX -0.83 -3.70% SUBC -5.30 -5.03% Show all references
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Carla Moz茅e is a reporter for MarketWatch, based in London. Follow her on Twitter @MWMozee.

Carla Mozee

Carla Moz茅e is a reporter for MarketWatch, based in London. Follow her on Twitter @MWMozee.

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STOXX Europe 600 Index EUR STOXX: SXXP 364.33 -3.24 (-0.88%)

Volume 0
Open 366.58
High 366.58
Low 362.74
P/E Ratio 0
Div Yield 0
Market Cap N/A

DAX XETRA-ETF: DAX 11,821.86 -148.97 (-1.24%)

Volume 0
Open 11,868
High 11,902
Low 11,770
P/E Ratio 0
Div Yield 0
Market Cap N/A

CAC 40 Index France: Euronext Paris: PX1 5,057.52 -58.22 (-1.14%)

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