European shares fall as tech stocks slide, Middle East tensions weigh

The development came a day after Iran signalled openness to peace talks, while US President Donald Trump indicated he could consider holding off on strikes against Tehran until after the midterm elections.Read more: Chinese yuan set for biggest daily drop in six months after PBOC tightens FX reservesOil prices rebounded, adding to market concerns. Brent crude futures rose 1.6% to above $100 a barrel, recovering from a 7% decline in the previous session.Live EventsTechnology stocks led sectoral losses, falling around 2%.

Shares of Aixtron dropped 3.5%, while ASML declined 2.8%. Siemens Energy also shed 2.4%.Reuters reported that Asian technology stocks had come under pressure earlier in the session as investors reassessed the AI investment theme following disappointing results from major US hyperscalers last week. Concerns that enthusiasm surrounding AI development had pushed valuations in the sector to unsustainable levels also weighed on sentiment.Read more: South Korean shares slide nearly 3% as tech selloff deepens; won strengthensApple's cautious gross margin outlook for the crucial holiday quarter added to the pressure.

The iPhone maker warned of rising memory-chip costs, raising concerns about the impact of higher component expenses on profitability.However, healthcare stocks bucked the broader market weakness, supported by a 6% rally in Bayer. Reuters reported that the German pharmaceutical and agriculture group raised its 2026 profit outlook, citing stronger-than-expected performance in its pharmaceuticals business, lifting sentiment across the sector.(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)(You can now subscribe to our ETMarkets WhatsApp channel)