Europe open: Shares gain despite Asia tech sell-off

(Sharecast News) - European stock markets opened higher on Tuesday despite another Asian tech sell-off over fears about the amount of borrowing by artificial intelligence companies.

The pan-regional Stoxx 600 index was up 0.34% at 0826 BST with major bourses higher on the back of a pause in fighting between the US and Iran that saw Brent crude oil slip towards $85 a barrel.

Markets are also awaiting Wednesday's US Federal Reserve decision for clues on the path of interest rates. Economists expect policy makers to hold steady this month.

Asian stock markets fell sharply as investors started offloading chip stocks. The South Korean Kospi dropped more than 10%, with trading halted at one point, and Japan's Nikkei fell more than 4%.

Shares in the chip companies SK Hynix and Samsung Electronics both fell by more than 10%.

Regional tech stocks were also hit on a report China has started making domestic deep‑ultraviolet lithography machines - a technology long dominated by ASML - hitting its shares as a result.

Unilever jumped after better-than-expected beating second‑quarter sales. LVMH rose 2.5% after reporting a 3% increase in quarterly sales, buoyed by resilient US demand

Mercedes‑Benz was up after posting higher operating profit.



Reporting by Frank Prenesti for Sharecast.com