Chipmakers lift European shares after two-day sell-off
European shares steadied on Thursday after their worst two-day sell-off since March as investors balanced concerns over the U.S. debt ceiling impasse and a global economic slowdown.
The pan-European STOXX 600 index was flat at 0707 GMT after losing about 2.5% over the past two days, amid a sell-off in luxury stocks and little progress in talks to raise the U.S. debt ceiling and an end to a default.
Ratings agency Fitch put the U.S. credit rating on a possible downgrade on Wednesday.
European chipmakers took a hit on Thursday after the world’s most valuable chipmaker, Nvidia Corp., forecast quarterly revenue to beat Wall Street estimates by 50%.
BE Semiconductor shares rose 6.5% and ASM International rose 6.3%. A broad technical index rose 1.7%.
The German DAX fell after data showed the German economy shrank in the first quarter of 2023 compared with the previous three months, signaling a recession. (Reporting by Shruti Shankar in Bengaluru; Editing by Sherry Jacob-Phillips)
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