BE Semiconductor Industries NV

Global tech stocks plunged after China achieved a breakthrough in developing deep ultraviolet lithography machines critical to AI chip manufacturing. South Korea’s Kospi index fell nearly 11 percent overnight, triggering a brief trading halt, while Japan’s Nikkei and Taiwan’s Taiex each sank more than 4 percent. The sell-off was sparked by reports that Chinese state-owned Shanghai Yuliangsheng has begun mass-producing the machinery, with leading Chinese chipmakers expected to receive first deliveries later this year. ASML shares dropped more than 8 percent, ASM International fell over 7 percent, and BE Semiconductor declined nearly 10 percent. Samsung and SK Hynix each plunged more than 12 percent, leaving the Kospi on track for its worst month since 1997.

Wall Street ended mixed, with the Dow Jones Industrial Average gaining 262.83 points to close at 52,210.08, while the Nasdaq fell 43.74 points. Investors are awaiting earnings from major tech companies such as Microsoft, Amazon, Meta, and Apple this week, amid concerns that the AI bubble may be starting to deflate. Brent crude oil prices tumbled 8.7% to 88.36 dollars per barrel after the US suspended strike operations against Iran, dragging energy stocks lower, led by Occidental Petroleum down 4.1% and Exxon Mobil down 1.4%. European markets closed flat, with the STOXX 600 edging up just 0.02%, as ASML shares plunged 8.4% following reports that China has developed its own DUV lithography chipmaking tools, weighing on tech peers ASM International and BE Semiconductor.

European stock markets closed only slightly higher on Monday, with the STOXX 600 index edging up 0.02% to 644.62 points, as falling technology stocks capped market gains despite easing tensions in the Middle East and a sharp drop in oil prices. Energy stocks fell 2%, making them the worst-performing sector in the STOXX 600, after West Texas Intermediate crude for September delivery dropped 7.5% to settle at 82.61 dollars a barrel and Brent crude fell 8.7% to 88.36 dollars a barrel, amid hopes for peace talks between the United States and Iran. The European technology index declined 1.7%, led by ASML, which tumbled 8.4% following reports that China has begun producing domestically developed deep ultraviolet chipmaking equipment, a technology long dominated by ASML. ASM International dropped 7.1% and BE Semiconductor plunged 9.7%. Investors are watching earnings reports from major US technology companies this week and the Federal Reserve's monetary policy meeting, with the CME Group's FedWatch Tool indicating a 62% probability that the Fed will hold interest rates at 3.50% to 3.75% at its July 28-29 meeting.

European stock markets closed higher on Friday, recovering from the sharp drop in the previous session, supported by strong corporate earnings. The STOXX 600 index closed at 644.51 points, up 0.82%, while Germany's DAX index surged 1.36% after SAP shares jumped 10% on higher-than-expected growth in cloud order backlog for the second quarter. European technology stocks rose 1.7%, rebounding from earlier declines, despite disappointing results from STMicroelectronics and BE Semiconductor. Deutsche Bank analysts warned that capital spending by tech giants is no longer supported solely by free cash flow, and low-cost open-source AI is seriously threatening business models. Meanwhile, three European Central Bank policymakers signaled that another rate hike may be necessary due to persistent inflation risks, with markets pricing in around a 70% chance of a 0.25% increase by the end of 2026. Valmet shares surged 22% after results beat expectations and the company announced plans to spin off a business, while Securitas shares fell 11% after profit missed forecasts, and Neste dropped 6.4% on a slight earnings miss.

European stock markets closed with their biggest decline in more than two weeks on Thursday, with the STOXX 600 index falling 1.18% to close at 639.27 points, pressured by disappointing earnings, hawkish remarks from the European Central Bank, and a surge in crude oil prices. France's CAC-40 dropped 1.64% to close at 8,299.09 points, Germany's DAX fell 1.56% to 24,763.12 points, and London's FTSE 100 declined 0.73% to 10,639.17 points. Although the ECB held interest rates steady, comments from President Christine Lagarde led investors to see a chance of a rate hike in September. Meanwhile, Brent crude futures surged to 100 US dollars per barrel for the first time since May after Houthi forces attacked a Saudi oil tanker in the Red Sea, pushing energy stocks up 1.54%. However, food and beverage stocks tumbled 4.1%, with Nestlé plunging nearly 8%, its biggest drop since 1989, after announcing the sale of some of its water and premium beverage businesses to Platinum Equity. Technology stocks fell 2.9%, led by STMicroelectronics which slumped 17.7% after forecasting third-quarter revenue below expectations, and BE Semiconductor which dropped 7.3% after reporting second-quarter results. In contrast, Soitec surged nearly 22% after revenue beat estimates. TotalEnergies rose 2.5% on its strongest quarterly results in nearly three years, and easyJet gained 2.7% despite a 70% drop in third-quarter profit.

European markets saw technology stocks decline, while ultra-long bonds rose on demand for safe-haven assets. Germany's 30-year bond yield fell 3 basis points to 3.62%, with ultra-long yields posting their longest weekly winning streak since the start of the Iran war, rising for three consecutive weeks. Semiconductor-related shares were sold off, with ASML Holding dropping 3.8% and BE Semiconductor Industries falling 4.5%, as jitters spread over the view that the AI model Kimi K3, unveiled by Chinese AI startup Moonshot, rivals top models from Anthropic and OpenAI. The Stoxx Europe 600 index ended 0.3% lower, with technology stocks posting the biggest decline among sectors. Meanwhile, UK bonds also rose, supported by expectations of a smooth transition of prime minister following the Labour Party's new leader taking office.

The London stock market closed higher, with the FTSE 100 rebounding. Amid a global sell-off in tech stocks, consumer staples were bought, sending the FTSE 350 Personal Goods index up 2.61%, the Beverages index up 2.36%, and the Retail index up 1.92%. Pharmaceutical giant GSK rose 2.1%, while AstraZeneca gained 0.5%. Automation solutions firm Rotork surged 66.8% after Swiss heavy electrical equipment giant ABB announced its acquisition. European equity markets rose for a third straight session, with the STOXX Europe 600 up 0.16%. The Basic Resources index fell 1.38%, while the Media index climbed 1.43%. Dutch firm ASML Holding rose 3.2%, but STMicroelectronics fell 4.9% and BE Semiconductor dropped 3.2%. Norway's Telenor tumbled 11.6% after lowering its full-year outlook. In eurozone bond markets, the German 10-year yield rose 3 basis points to 3.135%, its highest since May 20. The German-US 10-year yield spread narrowed to 143 basis points. In currencies, the euro traded at 1.1446 dollars, and the dollar at 162.42 yen.