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European stocks fall after weak ASM earnings fuel recession fears

European shares opened lower on Wednesday as lower-than-expected earnings from Dutch chip maker ASM International reignited investor fears of an upcoming economic slowdown.

Both the European region-wide Stox 600 and the French CAC index were down more than 1.1% in the first hour of trading.

ASMI fell 11.8% in Amsterdam after warning demand weakened in the first quarter and remained weak for the rest of the year. Sales in the second half are expected to decline by more than 10% compared to the first half of 2023.

The drop overshadowed strong corporate earnings from the US tech duo Alphabet, parent company of Microsoft and Googleshares rose 8.4% and 1.6% in after-hours trading in the US.

Contracts tracking the Wall Street benchmark S&P 500 and the tech-heavy Nasdaq 100 were up 0.4% and 1.2% before the New York open.

The moves came after Tuesday’s S&P 500 endured its worst day since late March. First Republic Shares fell 49% after the California-based bank said its customers withdrew $100 billion in deposits during the March banking panic.

Nomura Securities strategist Charlie McElligott said Tuesday was a “old-fashioned risk-off” session, with Treasuries surging, stocks and commodities such as gold, oil and copper falling, credit rising, and the dollar rising. is “painfully elevated” anti-dollar trading wherever”.

First Republic announced on Monday that it will cut a quarter of its workforce over the next two months in a bid to cut costs, though some say it will need to sell all or part of First Republic. I expect.

The lender’s results confirm its “zombie bank status” and underscore the extent of the “profitability crisis” of US regional banks, McElligott added.

US Treasuries remained stable, with interest-sensitive 2-year Treasury yields up 0.01 percentage points to 3.91%. Yields move inversely to prices. The US dollar index fell 0.4% against his basket of six other currencies, eating up some of the US dollar’s gains in the previous session.

Asian stocks are mixed. China’s CSI index fell 0.1%, continuing a sharp decline that began early last week, while Hong Kong’s Hang Seng Index rose 0.9%, partially reversing his drop of more than 5% over the same period. I was.

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European shares opened lower on Wednesday as lower-than-expected earnings from Dutch chip maker ASM International reignited investor fears of an upcoming economic slowdown.Both the European region-wide Stox 600 and the French CAC index were down more than 1.1% in the first hour of trading.ASMI fell 11.8% in Amsterdam after warning demand weakened in the first quarter and remained weak for the rest of the year. Sales in the second half are expected to decline by more than 10% compared to the first half of 2023.The drop overshadowed strong corporate earnings from the US tech duo Alphabet, parent company of Microsoft and Googleshares rose 8.4% and 1.6% in after-hours trading in the US.Contracts tracking the Wall Street benchmark S&P 500 and the tech-heavy Nasdaq 100 were up 0.4% and 1.2% before the New York open. The moves came after Tuesday’s S&P 500 endured its worst day since late March. First Republic Shares fell 49% after the California-based bank said its customers withdrew $100 billion in deposits during the March banking panic.Nomura Securities strategist Charlie McElligott said Tuesday was a “old-fashioned risk-off” session, with Treasuries surging, stocks and commodities such as gold, oil and copper falling, credit rising, and the dollar rising. is “painfully elevated” anti-dollar trading wherever”.First Republic announced on Monday that it will cut a quarter of its workforce over the next two months in a bid to cut costs, though some say it will need to sell all or part of First Republic. I expect.The lender’s results confirm its “zombie bank status” and underscore the extent of the “profitability crisis” of US regional banks, McElligott added.US Treasuries remained stable, with interest-sensitive 2-year Treasury yields up 0.01 percentage points to 3.91%. Yields move inversely to prices. The US dollar index fell 0.4% against his basket of six other currencies, eating up some of the US dollar’s gains in the previous session.Asian stocks are mixed. China’s CSI index fell 0.1%, continuing a sharp decline that began early last week, while Hong Kong’s Hang Seng Index rose 0.9%, partially reversing his drop of more than 5% over the same period. I was.
https://www.ft.com/content/c12d9d24-61b5-4d51-832d-cc69ca07c951 European stocks fall after weak ASM earnings fuel recession fears

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