Key facts
- European shares opened lower on Friday, heading for weekly losses.
- Escalating Middle East tensions and a selloff in global technology stocks dampened sentiment.
- The pan-European STOXX 600 index was down 0.6% by 0707 GMT.
- The benchmark index is set for a small weekly loss as investors rotated out of semiconductor shares.
- Europe's tech sector shed 2.3%, leading sectoral declines.
- Luxury sector stocks led gains on the STOXX index.
- Saab reported a bigger-than-expected increase in second-quarter operating profit.
European shares opened lower on Friday, heading for weekly losses as escalating tensions in the Middle East and a selloff in global technology stocks dampened investor sentiment. The pan-European STOXX 600 index was down 0.6% by 0707 GMT and was set for a small weekly loss. Investors rotated out of semiconductor shares due to concerns about elevated valuations, despite strong forecasts from industry leaders like ASML and TSMC. Europe's tech sector shed 2.3%, leading sectoral declines, with Soitec, ASMI, and ASML dropping significantly. Sectors that have underperformed, such as luxury, led gains on the STOXX index. Burberry reported continued recovery but noted that the Middle East conflict weighed on tourist spending. Swedish defence group Saab rose after reporting a stronger-than-expected profit increase. Iran's reported fresh attacks on U.S. facilities in the Gulf further lifted oil prices.