European shares slip as Mideast tensions linger; tech stocks pause rally

Partners Holding AG

05/06/2026 08:03

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    June 5 (Reuters) - European shares slipped at open on Friday and were on track to end the week marginally lower as uncertainty prevailed over Middle East peace efforts, while technology stocks led declines, pausing after a blistering two-month rally.
The pan-European STOXX 600 index .STOXX edged 0.2% down to 623.10 points by 0713 GMT and was set to log a 0.5% drop for the week.
Brent crude prices were at $95 a barrel and looked set to end the week higher, as chances for a diplomatic resolution between U.S. and Iran looked slim with both countries trading strikes earlier in the week. The Israel-Lebanon ceasefire also hangs in the balance as Hezbollah rejected the U.S.-brokered pact.
Technology stocks .SX8P led declines among sectors with a 2% drop, easing after a strong rally that has helped the shares gain over 33% in the past two months - the most among STOXX 600 sectors.
Tech stocks in Asia and the U.S. showed signs of pausing this week after disappointing results from U.S.-based Broadcom AVGO.O.
European chip stocks such as Infineon IFXGn.DE and Aixtron AIXGn.DE lost more than 4% each, while AI equipment makers Legrand LEGD.PA and Schneider Electric SCHN.PA both slipped about 1%.  
Among UK midcaps, shares of Bodycote BOY.L slid 11% after the British thermal processing services company said that Apollo Global Management APO.N does not intend to make a firm offer for it. 
Shares of Raspberry Pi <RPI.L> jumped 11.2% after the single-board computing company raised its full-year profit forecast, saying strong AI-related demand was expected to result in adjusted core profit "significantly ahead" of market expectations.
     
     

 (Reporting by Utkarsh Hathi and Johann M Cherian in Bengaluru; Editing by Mrigank Dhaniwala)
 ((utkarshtushar.hathi@thomsonreuters.com))