BEFORE THE BELL: CHIP SELLOFF WEIGHS ON EUROPE
European shares are set to open lower on Tuesday, with EuroSTOXX50 VELOCITY:STOXX50 and DAX XETR:DAX futures falling around 0.3% as a fresh bout of selling in global technology stocks dents risk appetite.
The pressure is centred on semiconductors after Samsung Electronics KRX:005930 fell more than 8% even as it reported a 19-fold jump in quarterly profit.
Investors used the results to lock in gains on a stock that has more than doubled this year and continued a rotation out of other high-flying AI shares.
The selloff spread across the sector, setting a negative tone for European chipmakers and fuelling concerns that the AI-driven rally is losing momentum.
Infineon XETR:IFX, STMicro EURONEXT:STMPA, ASMI EURONEXT:ASM, BE Semi EURONEXT:BESI, Soitec EURONEXT:SOI and Aixtron XETR:AIXA are down 3-5% premarket, while heavyweight ASML EURONEXT:ASML is indicated 1.4% lower.
Nasdaq futures are off almost 1%.
Energy stocks offer some support as oil prices rose on reports Iran fired at least two missiles at commercial ships transiting the Strait of Hormuz.
Futures on the commodity heavy FTSE 100 CURRENCYCOM:UK100 rose 0.1%. Shell LSE:SHEL edged up after slightly raising its second-quarter integrated gas outlook despite lower production linked to disruptions affecting Qatari volumes.
Defence stocks (.SXPARO) were supported premarket by expectations of stronger military spending.