European stock markets faced heavy selling pressure on Thursday, driven down by declining technology shares and persistently high oil prices. Andreas Lipkow, a market analyst at broker CMC Markets, noted that trading conditions have become uncomfortable, with enduring inflationary pressures remaining a central concern for participants.
Within the eurozone, the benchmark EuroStoxx 50 index dropped 1.94 percent to finish the session at 6,087.01 points. This decline kept the downward trend intact, which has been in place since mid-August. The index failed to breach the 21-day moving line used to measure short-term direction and ultimately closed just below the heavily watched 200-day moving line, which serves as an indicator for longer-term trajectory.
Lipkow observed that rising energy costs are increasingly straining both consumers and central banks, highlighting developments in the Middle East as a decisive factor. Without a rapid de-escalation and a noticeable easing in oil prices, the risk increases that investors will divest from equities regardless of short-term corporate results, particularly as a growing number of companies adopt more cautious business outlooks.
Indices outside the eurozone performed somewhat better during the session. Switzerland's SMI benchmark ended nearly unchanged, slipping 0.03 percent to 14,547.97 points, supported by gains among heavyweight stocks Nestlé and Novartis. In the United Kingdom, the FTSE 100 retreated 0.26 percent to conclude at 10,725.03 points.
European technology equities failed to escape the selling pressure originating from the Nasdaq in New York, where artificial intelligence and semiconductor issues declined following quarterly financial reports from Meta and Lam Research. Within the EuroStoxx index, Siemens Energy shares suffered particularly steep losses, while Schneider Electric, Infineon, and ASML also experienced sharp downturns.
Countering the broader weakness across the technology sector, SAP provided a positive development following its own quarterly figures. Shares of Europe's largest software company advanced 3.2 percent to lead the EuroStoxx index, helping to limit more extensive losses across the broader technology segment.
