Correction in Technology Stocks Shakes European Markets

General Overview

European stock markets are showing a pessimistic trend due to potential corrections in technology and semiconductor stocks from the USA. As of 11:20 AM, the Stoxx Europe 600 benchmark index is trading at 568 points, down by 0.4%, while the FTSE 100 index in England has decreased by 0.2%, falling to 9,699 points. In Germany, the DAX 40 index is down by 0.7% to 23,773 points, and in France, the CAC 40 index is trading at 8,031 points, a decline of 0.5%.

Global Correction Concerns

In the stock markets, a negative trend is observed as concerns about possible corrections grow due to the overvaluation of artificial intelligence and technology company stocks. Optimism regarding the resolution of trade disputes between the USA and China has given way to worries about corrections in technology stocks. Warnings from executives at Morgan Stanley and Goldman Sachs about potential market corrections have negatively impacted investors' risk perception.

Attention to Economic Data

While the selling pressure continues in European stock markets, attention has turned to today's employment report in the USA and the September Producer Price Index (PPI) data to be released in the Eurozone. Analysts state that uncertainties regarding the Fed's interest rate direction and concerns about the overvaluation of technology stocks in the USA contribute to the negative outlook in Europe.

Tax Expectations in the UK

Meanwhile, expectations that UK Finance Minister Rachel Reeves will make comprehensive adjustments regarding tax increases are creating additional selling pressure in the markets. Minister Reeves implemented a record tax increase of £40 billion in last year's budget, and her new moves are another factor being closely monitored by investors.

Market Volatility May Continue

Concerns are rising that developments regarding the budget planning of countries across the region and potential political disputes could affect the markets. Today, alongside the Eurozone PPI data, globally awaited Purchasing Managers' Index (PMI) data for the service sector is also anticipated by investors.