(Reuters) - European stocks were hit by a selloff in technology shares on Tuesday, as U.S. peers slumped on fears of new coronavirus restrictions, while London blue-chips outperformed on a boost for the telecoms and energy sectors.
Shares in SAP SE SAPG.DE, ASML Holding NV ASML.AS, Prosus NV PRX.AS and Infineon Technologies AG IFXGn.DE fell between 2.6% and 5%, tracking continued declines in U.S. tech majors on worries that another lockdown in California to contain a surge of coronavirus infections may slow a U.S. economic recovery.
“California is a tech haven, so this is going to have a disproportionate effect on tech stocks,” said Connor Campbell, markets analyst at SpreadEx.
Globally, a Reuters tally showed the number of coronavirus infections hit 13 million on Monday, climbing by a million in just five days.
Travel & leisure .SXTP stocks, one of the pandemic's worst casualties, fell 2.7% for the worst session in three weeks.
Sources said BP delivered 3 million barrels of Iraqi oil to the Shanghai International Energy Exchange this month, becoming the first major global trader to make a physical delivery since China launched the futures market in 2018.
Meanwhile, data on Tuesday showed euro zone industry output recovered from record declines, but was lower than expected. Separately, Germany’s ZEW research institute, said the outlook for Europe’s largest economy remains largely unchanged in July versus the previous month.
“The latest ZEW index paints a good picture of how the recovery of the German recovery could evolve... (it) adds to the evidence of a levelling off in the German economy,” Carsten Brzeski, chief economist, eurozone at ING.
Germany's DAX index .GDAXI ended 0.8% lower.
Healthcare stocks were among the biggest drags, with Roche ROG.S down 1.6%. The Swiss drugmaker struck a $1.7 billion cancer drug pact with Blueprint Medicines BPMC.O, which includes rights to the U.S. company's lung cancer drug pralsetinib.
Reporting by Sruthi Shankar in Bengaluru and Joice Alves in London; Editing by Shounak Dasgupta, William Maclean
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