Key facts
- European shares declined on Thursday, influenced by pressure on AI stocks.
- The pan-European STOXX 600 index fell 0.1%.
- The STOXX 600 tech index dropped 1.5%, with Soitec and Aixtron seeing significant losses.
- Sodexo shares gained after raising its full-year organic revenue growth forecast.
- Market focus is on the upcoming U.S. June nonfarm payrolls data.
European shares edged lower on Thursday, mirroring a cautious global market sentiment as artificial intelligence-related stocks faced selling pressure. The pan-European STOXX 600 index slipped 0.1% to 638.27 points by 0704 GMT.
Overnight, AI stocks in Asia and on Wall Street experienced significant declines, cooling off from a strong performance at the end of the previous quarter that had boosted their valuations. However, Europe's relatively smaller exposure to the tech sector limited the drag on the broader STOXX index.
The STOXX 600 technology index was the biggest sectoral loser, falling 1.5%. Among individual stocks, Soitec dropped 5.1% and Aixtron declined 3.6%.
In contrast, shares of French food caterer Sodexo rose 6.5% after the company revised its full-year organic revenue growth forecast upward, citing better-than-expected third-quarter results.
Attention is now shifting to the upcoming U.S. June nonfarm payrolls report, which is expected to provide crucial insights into the Federal Reserve's potential interest rate path. Investors are closely scrutinizing economic data for clues on monetary policy, especially as the Federal Reserve has indicated it will cease issuing forward guidance.