European markets open lower as region’s tech stocks lead sell-off
A trader works on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., Oct. 29, 2025.
Brendan McDermid | Reuters
LONDON — European stocks opened in negative territory on Wednesday, mirroring global declines as concerns grow over sky-high tech valuations.
The pan-European Stoxx 600 was down 0.4% at 8:20 a.m. in London (3:20 a.m. ET) with most major bourses and sectors in the red.
The U.K.’s FTSE index opened 0.1% lower, Germany’s DAX was down 0.7%, France’s CAC 40 fell 0.4% and Italy’s FTSE MIB was 0.3% lower.
Leading the losses were European technology companies, with the Stoxx 600 Europe Technology Index down 1.2% following the sharp sell-off in U.S. tech stocks on Tuesday.
The lackluster sentiment seen in European bourses Wednesday comes amid a similar picture in U.S. and Asia Pacific markets overnight, as investors appear increasingly concerned about the lofty valuations of AI-related stocks and tech companies, fearing a bubble is forming.
Overnight, futures tied to the tech-heavy Nasdaq slid as investors continued to grapple with where megacap tech stocks head from here. Meanwhile, Japan’s Nikkei 225 plunged below the 50,000 mark overnight amid a wider decline in Asia markets as investors fled AI-related stocks.
Market sentiment also took a knock yesterday when the CEOs of Goldman Sachs and Morgan Stanley warned investors to brace for a drawdown in markets over the next two years.
It’s another busy day for earnings in Europe on Wednesday.
Novo Nordisk shares started the session 4.5% lower before reversing course to trade 2% higher. The Danish drugmaker posted net profits of 20 billion Danish kroner ($3.1 billion) in its third quarter earnings report, in line with analysts’ expected 20.12 billion Danish kroner.
BMW shares fell 1.5% on Wednesday morning, as the German carmaker’s earnings before interest came in at 2.3 billion euros for the third quarter, in line with analysts’ expectations.
Meanwhile Orsted advanced 1.2%, as the Danish wind energy firm posted a 1.7 billion Danish kroner net loss for the third quarter, which was better than analysts’ prediction of a 1.95 billion Danish kroner net loss.
Sweden’s Riksbank will announce its latest interest rate decision on Wednesday, and on the data front, we’ll be seeing the latest Germany factory orders, U.K. new car sales and European purchasing managers’ index (PMI) data.
— CNBC’s Lee Ying Shan and Sarah Min
