Europe open: Shares down as tech sell-off hits sentiment

(Sharecast News) - European shares opened lower on Friday as a sell-off in tech stocks in the US and Asia overnight hit sentiment. The pan-regional Stoxx 600 index was down 0.2% in early deals to 623.

Investors looked to limit their exposure to artificial intelligence stocks after a gloomy forecast from Broadcom on its AI chips.

"Disappointing guidance from Broadcom regarding its AI chip business didn't resonate well among chipmakers - and broader markets - yesterday," said Swissquote analyst Ipek Ozkardeskaya.

"Meanwhile, stress in the private credit market has been creeping into the headlines, and the Middle East news remains as muddy and uncertain as ever."

The sell-off hit chipmakers and related firm with BE Semiconductor, ASML, ASM International and STMicroelectronics all down.

Reporting by Frank Prenesti for Sharecast.com