Tech stocks push Europe lower after Wall Street tumbles

The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany

European stocks opened lower on Tuesday, hit by a drop overnight on Wall Street following a flare-up in U.S.-China tensions and new coronavirus restrictions.

The pan-European STOXX 600 index fell 1.3% by 0712 GMT, with technology stocks .SX8P slumping 2.7%.

U.S. tech majors lost momentum on Monday after California shut bars, banned restaurant dining and other businesses to contain a surge of coronavirus infections, raising fears it may slow a U.S. economic recovery.

Meanwhile, Washington on Monday rejected China’s disputed claims to offshore resources in the South China Sea, a move that Beijing criticised as inciting tensions in the region.

The latest skirmish dampened risk sentiment even as investors were hopeful that companies will surpass beaten-down earnings expectations with the reporting season underway.

German meal-kit delivery firm Hellofresh gained 4.3% as it raised its full-year revenue forecast, while industrial technology group Hexagon jumped 5.9% after forecasting second-quarter profit above market expectations.

Norwegian oil firm Aker BP slipped 2.4% as crude prices fell, but the company beat second-quarter pre-tax profit expectations.

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