Stock market: Seoul sends fresh shockwaves through the tech sector; in Milan (-0.7%), ST and Prysmian take a hit
Saipem also plummets (-8.8 per cent) following the downward revision of its guidance
(Il Sole 24 Ore Radiocor) - A fresh shockwave from Asia has hit the tech sector, spilling over into Europe, with share prices holding up for the most part, except for Milan’s FTSE MIB (-0.69%), which was dragged down by ST (-3%) and Prysmian (-4.3%), as well as Saipem (-8.8%). The sell-off hit the Tokyo Stock Exchange (-4%) and the Seoul Stock Exchange (-10.8%) hardest, partly due to rumours of significant advances by China in semiconductor technology. The announcement was interpreted as a sign of China’s ability to narrow the gap with Western technologies in a sector considered crucial for artificial intelligence. As a result, Samsung Electronics (-13%) and SK hynix (-13.7%) took a beating; together, they account for around half of the Kospi’s market capitalisation. But the blow to the tech sector has not spared Wall Street either, where tech shares have entered a correction following the collapse of global chipmakers, whilst fears are mounting over the resilience of the AI sector ahead of the US Big Tech firms’ earnings reports. Consequently, the Nasdaq 100 index is down 0.8 per cent, but has now lost more than 10 per cent from its all-time high in early June.
In the background, attention remains focused, on the one hand, on the Fed’s interest rate decision due tomorrow, and, on the other, on developments in the Middle East, with talks between the US and Iran appearing to be moving forward despite mutual threats. The market appears to be banking on the possibility of an agreement, and oil prices continue to fall: Brent is trading at $85.5 per barrel (-3.3%), whilst WTI stands at $80.44 (-2.63%). Gas prices are also down at €56.5 per megawatt-hour (-2.9%).
The trend in crude oil prices is also being reflected on the Milan Stock Exchange, with Eni down 1.7 per cent, Tenaris down 1.8 per cent and Saipem plummeting by 8.8 per cent. However, the main factors contributing to the slump in the company led by Alessandro Puliti are its financial results and the downward revision of its 2026 EBITDA guidance. As mentioned, there was also selling pressure on tech stocks, with St down 3 per cent and Prysmian down 4.3 per cent, whilst, by contrast, healthcare stocks such as Diasorin (+5.3 per cent) and Amplifon (+3 per cent) and beverage stocks such as Campari (+3.4 per cent) stood out.
Turning to the currency markets, the euro is trading at 1.1394 dollars (up from 1.1376 at yesterday’s close) and is worth 186.55 yen (186.1), whilst the dollar-yen exchange rate stands at 163.69 (163.68).
