European stocks sink as tech gloom spreads

European shares crumbled on Friday, tracking a decline in US stock futures after tech stocks Alphabet and Amazon missed results expectations, further sapping risk appetite as European earnings also disappointed with Valeo harshly punished.

The leading index of euro zone stocks .STOXX50E fell 1.5 percent with Germany’s DAX .GDAXI down 1.7 percent and France’s CAC 40 .FCHI down 1.8 percent.

Overall the third-quarter earnings season has been marred by rolling sell-offs across global markets and marked by sharp downgrades to earnings estimates.

Disappointing Amazon and Alphabet results reignited investors’ anxieties about the overwhelming dominance of tech stocks – prized for seemingly unstoppable growth – in this market cycle.

The pan-European STOXX 600 was on track for its worst month since August 2015.

Read more