European shares dropped for a third consecutive session on Wednesday, with the pan-European STOXX 600 index declining by 0.5 per cent to a one-week low as of 0830 GMT. The technology sub-index was hit hardest, dropping 2.6 per cent, primarily due to Dutch semiconductor firm ASML, whose shares fell 6.4 per cent after it provided a weak third-quarter sales forecast. Concerns were further fueled by reports that the US may impose severe trade restrictions on companies providing China access to advanced semiconductor technology, impacting investor sentiment. Other semiconductor stocks, including ASM International and BE Semiconductor, also saw losses of over 3 per cent. The Amsterdam benchmark index dropped 1.1 per cent, reaching its lowest level in two weeks. Thomas Gehlen, a senior market strategist, noted that while trade restrictions are causing concern, the impact would likely be bilateral, affecting the US as well. In the UK, the FTSE 100 slipped 0.3 per cent after inflation held steady at 2 per cent, countering expectations of a decline and reducing hopes for an interest rate cut from the Bank of England. Investors are also awaiting final eurozone inflation data for June, scheduled for release at 0900 GMT, ahead of the European Central Bank's upcoming rate-setting meeting. Despite the broader market decline, Adidas shares rose 3.9 per cent after the company raised its full-year earnings forecast following better-than-expected second-quarter results. Rival Puma gained 1.5 per cent. Additionally, Roche shares jumped 5 per cent after the Swiss drugmaker reported positive results from an early-stage trial of a drug candidate acquired from Carmot Therapeutics, while shares of Novo Nordisk fell 3.6 per cent. Attribution: Reuters.
