Key facts
- European shares fell 1.8% for the week, ending a four-week winning streak.
- Tech stocks declined due to AI valuation concerns and profit-taking.
- Renewed Middle East tensions, including U.S. and Iran strikes, impacted oil markets.
- Vodafone shares jumped 12.6% on news of a stake sale.
- EasyJet shares surged 14.3% on a takeover approach.
- Volkswagen reported an 8.6% drop in Q2 vehicle deliveries.
European shares concluded a four-week winning streak, declining 1.8% for the week as technology stocks experienced a selloff and renewed tensions in the Middle East rattled oil markets. Investors are also anticipating the Nasdaq debut of South Korean chipmaker SK Hynix, which priced its American Depositary Receipts at $149, raising approximately $26.5 billion. Concerns over the valuations of AI-related stocks persisted, contributing to declines in semiconductor shares like Micron Technology, Western Digital, and Seagate Technology. Geopolitical risks were heightened by U.S. and Iran trading strikes, leading Washington to re-impose sanctions on Iranian oil. Despite these concerns, New York Fed President John Williams indicated he does not expect sustained energy price increases. Telecom stocks saw gains, particularly Vodafone, while travel and leisure stocks also advanced. EasyJet shares surged on a takeover approach, and St. James's Place faced a significant drop. The European steel sector received a boost from J.P. Morgan's positive outlook. Volkswagen's shares fell for a third consecutive day amid blocked restructuring plans and a reported 8.6% decline in second-quarter vehicle deliveries.