European shares slip on global tech slump; Zalando down on regulator action
European shares slip on global tech slump; Zalando down on regulator action
By Utkarsh Hathi and Johann M CherianFri, June 26, 2026 at 9:00 AM UTC
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The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, June 24, 2026. REUTERS/staff
By Utkarsh Hathi and Johann M Cherian
June 26 (Reuters) - European shares declined on Friday, with technology shares tracking global sector weakness, while Zalando fell after Germany's financial regulator launched a probe into the retailer's accounts.
The pan-European STOXX 600 index was down 0.6% at 636.40 at 0832 GMT, retreating from a record-high close in the previous session, and was on track for a weekly gain.
Shares of Zalando slid 4.3% after BaFin launched an investigation into the online fashion retailer's 2025 financial statements, citing evidence the company breached accounting regulations. The broader retail sector lost 0.2%.
Meanwhile, uncertainty around the global technology sector prevailed, with investors focused on a surge in memory chip costs as a result of strong AI-driven demand. Asian equities fell sharply overnight, while Wall Street's tech-heavy Nasdaq futures lost about 1%.
In Europe, the tech sector fell 1.4%.
Chipmakers Infineon and STMicroelectronics slipped 3% and 2.4%, respectively. On the other hand, semiconductor equipment makers BE Semiconductor and ASML dropped 2.5% and 1.1%, respectively.
AI equipment maker Schneider Electric shed 1.8%.
"The realities of rising memory costs are being felt across other sectors," said Craig Cameron, portfolio manager at Templeton Global Investments.
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"The market has largely expected this kind of shift and clearly we've reached a point where, from a consumer and smartphone and PC-type perspective, it just doesn't make any sense to keep prices flat when memory is becoming such a large portion of costs."
Telecom companies Ericsson and Nokia were also down 1.4% and 2.3%, respectively.
The benchmark was set for modest weekly gains, as easing oil supply concerns following the reopening of the Strait of Hormuz helped Brent Crude retreat to pre-conflict levels, while Europe's smaller tech exposure helped cushion the losses seen in regional equities.
The STOXX tech index now outperforms the S&P 500 tech sector on an annual, monthly and quarterly basis, also due to the Wall Street index's bigger exposure to software companies.
U.S. inflation broke above 4% for the first time in three years in May, reinforcing expectations for a rate hike from the Federal Reserve this year.
Traders are pricing in another 25 basis point interest rate hike by the European Central Bank by year-end.
Among others, automaker Volkswagen shares were up 0.7%. A report said the company aims to slash up to 100,000 jobs over the next few years.
London-listed shares of Wise climbed 8% after the money transfer company reported strong growth in customers and announced a share buyback plan worth $500 million.
(Reporting by Utkarsh Hathi and Johann M Cherian in Bengaluru; Editing by Sherry Jacob-Phillips and Joyjeet Das)
Source: “AOL Money”
