European shares opened lower on Friday as weakness in global technology stocks weighed on investor sentiment.
The decline came after technology shares tracked losses seen in Asian markets and US futures, while online fashion retailer Zalando came under pressure following an accounting investigation by Germany’s financial regulator.
The pan-European STOXX 600 index fell 0.46% to 637.27 as of 0711 GMT.
The benchmark retreated from the record-high closing level reached in the previous session.
Despite Friday’s losses, the index remained on course to post a weekly gain.
Zalando drops after regulatory investigation
Shares of Zalando declined 4.4% after Germany’s financial regulator, BaFin, launched an investigation into the online fashion retailer’s 2025 financial statements.
According to the regulator, the investigation follows evidence suggesting the company may have breached accounting regulations.
The development made Zalando one of the weakest performers in early European trading.
The broader retail sector also moved lower, falling 0.5% as investors reacted to the news surrounding the company.
Technology sector tracks global weakness
Technology stocks remained under pressure as uncertainty continued across the global sector.
Investors focused on rising memory chip costs, which have increased due to strong demand driven by artificial intelligence.
Asian equities recorded sharp losses overnight, while futures linked to the technology-heavy Nasdaq index on Wall Street fell by around 1%.
The broader weakness spilled over into European markets.
Europe’s technology sector declined 1.5%, making it one of the worst-performing sectors during early trade.
Chipmakers lead sector losses
Semiconductor companies posted some of the steepest declines.
Shares of Infineon dropped 2.9%, while STMicroelectronics fell 3.2%.
Among semiconductor equipment manufacturers, BE Semiconductor declined 3.5%, while ASML slipped 1.2%.
The losses reflected investor concerns over the impact of rising memory chip costs and broader uncertainty surrounding the global technology sector.
Telecom and auto stocks are also under pressure
Telecommunications companies also traded lower during the session.
Ericsson fell 1%, while Nokia declined 2.1%.
Auto stocks came under pressure as well, with the sector falling 0.4%.
Investors assessed the potential implications of higher memory chip costs on the automotive industry, which relies heavily on semiconductor supplies.
Weekly gain still within reach
Although European equities opened lower, the STOXX 600 remained on track to register a weekly gain after reaching a record closing high in the previous session.
Market participants continued to monitor developments in the global technology sector, where concerns over rising chip costs and demand dynamics influenced sentiment across regional equity markets.
Meanwhile, the investigation into Zalando’s financial statements added further pressure to the retail sector, contributing to broader market weakness during Friday’s opening trade.
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