Best European Stocks Recovering After Tech Sell-Off

<div><img width="750" height="430" src="https://www.financebrokerage.com/wp-content/uploads/2019/08/European-Stocks-Status-During-Powells-Speech-Finance-Brokerage.png" class="attachment-post-thumbnail size-post-thumbnail wp-post-image" alt="European stock" decoding="async" loading="lazy" /></div><h1><strong>Best European Stocks Recovering After Tech Sell-Off</strong></h1>
<p>European stocks cautiously rebounded in late-morning trade on Friday, attempting to recover from the tech sell-off that reverberated across the continent. Investors are also closely watching key central banks as they prepare to announce their latest policy decisions next week.</p>
<p>The pan-European Stoxx 600 index stabilized after early-morning losses, with energy sector gains counteracting the continued decline in technology-best European stocks. However, Germany’s tech-heavy Dax index was the only one falling in Europe, down 0.5%.</p>
<h2><strong>Tech Giants’ Disappointing Earnings: Tesla and Netflix Trigger Sharp Sell-offs in the Technology Sector</strong></h2>
<p>The tech sector experienced significant declines, with the Stoxx 600 Technology index dropping 0.9%. Disappointing earnings triggered the fall. Eventually, it resulted from industry giants Tesla and Netflix, leading to a sharp sell-off on Wall Street.</p>
<p>On Wall Street, the tech-focused Nasdaq Composite, which had seen a remarkable 34% increase since the beginning of the year, plunged over 2% on Thursday. At the same time, the Fang+ index of major tech companies experienced its worst day this year.</p>
<p>Futures contracts for the Nasdaq 100 indicated a 0.5% higher opening on Friday. Meanwhile, those for the benchmark S&amp;P 500 rose 0.3% ahead of the New York market open.</p>
<h2><strong>China’s Measures: European Energy Stock Market Flotation as China Unveils Steps to Support its Economy</strong></h2>
<p><a href="https://www.financebrokerage.com/european-stocks-are-waiting-for-economic-indicators/">European</a> energy stocks provided some relief as they rose 0.7%. The expectations that Chinese officials would announce additional measures to bolster the world’s second-largest economy supported the comedown.</p>
<p>Brent crude, the international benchmark, climbed 1.1 % to $80.54 a barrel, while US benchmark West Texas Intermediate rose 1.2% to $76.52 a barrel.</p>
<p>In Asia, equities showed mixed results, with Hong Kong’s Hang Seng rising 0.9% and China’s benchmark CSI losing 0.1%.</p>
<p>Investors are now gearing up for the US Federal Reserve’s policy meeting next week. The market expects a 0.25 percentage point increase in the benchmark federal funds rate to a target range of 5.25% to 5.5%. The recent inflation data, which was lower than anticipated, suggests that the central bank’s tightening cycle may be nearing its conclusion.</p>
<p>Padhraic Garvey, Americas regional head of research at ING, mentioned that with more encouraging inflation dynamics, the general perception is that central banks are nearing their cycle peaks in terms of tightening.</p>
<h2><strong>European Automobile Sector Gets a Boost: China’s Car Sales Measures and Volvo Cars’ Positive Forecast Contribute to Sector Growth</strong></h2>
<p>Traders, however, are still debating the likelihood of further rate hikes beyond the upcoming meeting. Fresh data showed a decline in US unemployment aid applications. Therefore, data suggests the labor market remains resilient despite rising borrowing costs.</p>
<p>Next week, the Bank of Japan and the European Central Bank will also hold interest rate-setting meetings.</p>
<p>In best European stocks, the automobile and parts sector saw gains after China unveiled measures to boost car sales and support its sluggish economy. Volvo Cars’ positive results further supported the sector, with shares rising 6.8%.</p>
<p>Amidst the economic uncertainties, markets remain attentive to central bank decisions and any potential impacts on various sectors and global equities.</p>
<p>The post <a rel="nofollow" href="https://www.financebrokerage.com/best-european-stocks-recovering-after-tech-sell-off/">Best European Stocks Recovering After Tech Sell-Off</a> appeared first on <a rel="nofollow" href="https://www.financebrokerage.com">FinanceBrokerage</a>.</p>