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European shares slip as tech drops after Alphabet results, ECB decision in focus

European shares slip as tech drops after Alphabet results, ECB decision in focus

The STOXX 600 fell 0.5% as chip stocks led declines after earnings and guidance updates, while energy shares rose with Brent above $96 ahead of the European Central Bank's policy meeting.

Fact Check
Every element of the claim is corroborated by primary Reuters reporting and Trading Economics. The Reuters article 'European shares fall as STMicro results hit tech' confirms STOXX 600 down 0.5%, chip stocks leading declines, energy shares rising with Brent above $96, and the ECB decision being in focus. The Alphabet earnings article confirms Alphabet results weighed on tech (shares fell ~3%). Trading Economics confirms the ECB left rates unchanged as expected and the broad market decline. The only minor nuance is that STMicro was the dominant chip decliner rather than Alphabet itself among European stocks, but the claim's framing of tech dropping after Alphabet results and chip earnings is accurate.
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Summary

European shares edged lower on Thursday, with the pan-European STOXX 600 down 0.5% at 643.47 points by 0705 GMT, as technology stocks retreated after Alphabet's latest results and higher spending plans sharpened investor concerns about returns on AI investment. Tech shares fell 2.7%, led by a 15% slide in STMicroelectronics after the chipmaker forecast third-quarter revenue at a midpoint slightly below market expectations, while BE Semiconductor Industries lost 4.6% after its second-quarter results. Energy stocks outperformed, rising 0.6% as Brent crude climbed above $96 a barrel after the United States launched a new round of strikes on Iran and Yemen's Houthis targeted oil tankers in the Red Sea, widening the Middle East conflict. Markets were also assessing earnings from Nestle and TotalEnergies ahead of the European Central Bank's policy decision, with the central bank widely expected to leave rates unchanged.

Terms & Concepts
  • capital spending: Money a company plans to invest in long-term assets such as data centres, equipment or infrastructure.
  • guidance: A company's outlook or forecast for future financial or operating performance.
  • midpoint: The middle value of a forecast range, often used by investors to compare company guidance with market expectations.