Live Markets: Before the bell: Tech selloff to drag Europe lower

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Tue 07:54

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BEFORE THE BELL: TECH SELLOFF TO DRAG EUROPE LOWER 
European shares are set for a weaker open on Tuesday, with futures down over 1% as a sharp pullback in global technology stocks hits risk appetite and drags U.S. futures lower. 
Nasdaq futures are off over 2%, signalling a rotation out of this year’s top-performing chip and AI stocks, with investors wary of stretched valuations ahead of Wednesday's key Micron MU.O earnings. The U.S. memory chipmaker is down more than 7% on Tradegate.
That pressure spills into Europe, where semiconductor names including Infineon IFXGn.DE, STMicro STMPA.PA and Aixtron AIXGn.DE are called lower.
Investors are watching developments in U.S.-Iran talks as oil prices fall more than 1%, while also digesting rising expectations that the Federal Reserve may need to act more aggressively on inflation later this year. 
The backdrop has already hit Asia hard, with South Korea's Kospi .KS11 tumbling more than 8% amid concerns the chip rally has become stretched.
In European corporate news, Brenntag BNRGn.DE is up premarket after raising its medium-term guidance on stronger-than-expected results, while Heineken HEIO.AS gains on a CEO appointment. 
German utility RWE RWEG.DE is set for a weak start after a capital raise to pay for a deal to increase its stake in power grid operator Amprion.
(Danilo Masoni)
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