European stocks were still lower on Tuesday as sharp falls in Hong Kong and Shanghai dragged on sentiment along with downbeat news from Reckitt Benckiser and MorphoSys.
The pan-European STOXX index fell 0.52% in early trade with all major regional bourses lower.
Fears of stricter regulation of China’s heavyweight technology sector have fuelled a selloff in global markets this week, despite optimism about US and European earnings season as a measure of progress from the Covid pandemic.
“The clampdown on various sectors within the Chinese economy that rely on overseas investment has seen a flight of capital out of Chinese stocks, particularly those with overseas listings, raising concerns as to what other sectors might be next,” said CMC Markets analyst Michael Hewson.
In equity news Lysol maker Reckitt tumbled 8.39% as easing demand for its soaps and cold remedies led the company to miss analysts’ estimates for quarterly sales.
Dutch tech investor Prosus, which has a stake in China tech giant Tencent, slumped 8%, hitting new lows since May 2020, weighed down by the selloff in Hong Kong and mainland China shares.
German biotech firm Morphosys slid 11.3% after cutting its revenue guidance for 2021.
French payments firm Worldline slumped 9% after the company missed half-year operating earnings expectations and investors were disappointed it had not benefited more from shop reopenings after lockdowns.
Shares in Croda International topped the Stoxx with a gain of 6% as the speciality chemicals company said it expected annual profit to be well ahead of expectations after reporting record results for the first half.
French software company Dassault Systemes rose 3.77% after it raised its 2021 forecasts on the back of strong momentum across its businesses.
