ASML and Nvidia Rekindle Tech Concerns as US Futures Drop – Europe Market Wrap

Tech stocks led a worldwide equities decline as the Trump administration slapped new limits on Nvidia’s chip exports to China, escalating trade tensions.

Nasdaq 100 futures dropped 1.5%. Nvidia shares fell around 6% in premarket trade. ASML fell more than 7% after reporting lower-than-expected orders, citing weakness in the chip sector. In Europe, the Stoxx 600 index fell 0.8%. The Dollar weakened. Gold reached a new high, while the Swiss Franc rallied. Meanwhile, UK bonds surged after inflation dropped more than expected in March, prompting traders to raise their bets on BoE rates.

Stocks recovered some of their losses in the morning session on signals that China may be willing to negotiate with the US, raising hopes for the potential of reducing trade tensions.

China wants Trump’s administration to take a number of steps before agreeing to discussions, including demonstrating greater respect by reining in insulting remarks made by members of his cabinet, according to a person familiar with Chinese government thinking.

Oil recovered from its earlier dip following reports that China may be open to trade talks with the US. Bullion rose as much as 2.7% to hit $3,300 per ounce for the first time, breaking the previous high established on Monday.