European markets open lower as region’s tech stocks lead sell-off

LONDON — European stocks opened in negative territory on Wednesday, mirroring global declines as concerns grow over sky-high tech valuations.

The pan-European Stoxx 600 was down 0.4% at 8:20 a.m. in London (3:20 a.m. ET) with most major bourses and sectors in the red.

The U.K.’s FTSE index opened 0.1% lower, Germany’s DAX was down 0.7%, France’s CAC 40 fell 0.4% and Italy’s FTSE MIB was 0.3% lower.

Leading the losses were European technology companies, with the Stoxx 600 Europe Technology Index down 1.2% following the sharp sell-off in U.S. tech stocks on Tuesday.

The lackluster sentiment seen in European bourses Wednesday comes amid a similar picture in U.S. and Asia Pacific markets overnight, as investors appear increasingly concerned about the lofty valuations of AI-related stocks and tech companies, fearing a bubble is forming.

Overnight, futures tied to the tech-heavy Nasdaq slid as investors continued to grapple with where megacap tech stocks head from here. Meanwhile, Japan’s Nikkei 225 plunged below the 50,000 mark overnight amid a wider decline in Asia markets as investors fled AI-related stocks.

Market sentiment also took a knock yesterday when the CEOs of Goldman Sachs and Morgan Stanley warned investors to brace for a drawdown in markets over the next two years.

It’s another busy day for earnings in Europe on Wednesday.

Novo Nordisk shares started the session 4.5% lower before reversing course to trade 2% higher. The Danish drugmaker posted net profits of 20 billion Danish kroner ($3.1 billion) in its third quarter earnings report, in line with analysts’ expected 20.12 billion Danish kroner.

BMW shares fell 1.5% on Wednesday morning, as the German carmaker’s earnings before interest came in at 2.3 billion euros for the third quarter, in line with analysts’ expectations.

Meanwhile Orsted advanced 1.2%, as the Danish wind energy firm posted a 1.7 billion Danish kroner net loss for the third quarter, which was better than analysts’ prediction of a 1.95 billion Danish kroner net loss.

Sweden’s Riksbank announced it was leaving its interest rate unchanged at 1.75%, meanwhile on the data front, we’ll be seeing the latest Germany factory orders, U.K. new car sales and European purchasing managers’ index (PMI) data.

— CNBC’s Lee Ying Shan and Sarah Min