European Markets Close Lower on Geopolitical Jitters and Tech Sell-off
European stock markets ended Wednesday's session in the red, with investors cautious due to geopolitical uncertainties and profit-taking in tech stocks. The Dax, Germany's benchmark index, closed 0.6% lower at 24,277 points.
Defensive stocks, like Nestle, saw further gains. However, the mood was dampened by significant losses in the US tech sector, including Palantir. In Switzerland, Alcon fell over 9% following disappointing results and a downgraded outlook. Meanwhile, K+S plummeted almost 5% in the MDax after a double downgrade from 'Buy' to 'Sell' by Berenberg Bank. The name of the analyst responsible for the downgrade remains unknown.
Bitcoin's price stagnated at 113,655 dollars, reflecting investors' lower risk appetite. The Dax was held back by profit-taking in tech stocks and geopolitical uncertainties. Investors are now looking for direction from potential progress in the Ukraine ceasefire and Fed Chair Jerome Powell's speech at the Jackson Hole meeting.
The Dax closed 0.6% lower at 24,277 points, turning away from its resistance at 24,500 points. Rheinmetall also fell over 1% due to profit-taking in the defense sector. TAG Immobilien weakened after raising around 288 million euros through a capital increase. Markets await further cues from global events to dictate their next move.
