European shares flat as defence gains combat tech losses
Tuesday, February 25, 2025, 17:16 GMT+7
European shares were flat on Tuesday as defence stocks climbed, offsetting declines in technology stocks that came on the back of worries over an intensifying U.S.-China technology war.
The pan-European STOXX 600 index was up 0.07 percent as of 0816 GMT.
The technology index was a major drag and fell 0.9 percent.
The U.S. is planning to toughen semiconductor restrictions on China, continuing and expanding the Biden administration's efforts to limit Beijing's technological prowess, Bloomberg News reported on Monday.
Semiconductor stocks STMicroelectronics fell 1.4 percent and ASML lost 1.6 percent.
Meanwhile, AI-exposed stocks such as Schneider Electric and Siemens Energy shed 1.3 percent and 2.2 percent, respectively.
Unilever fell three percent after the consumer goods giant said CEO Hein Schumacher will step down and be replaced by finance chief Fernando Fernandez.
Countering losses, the european aerospace and defence index jumped over one percent following reports that Germany's chancellor-in-waiting Friedrich Merz has opened talks to quickly approve up to 200 billion euros ($209.44 billion) in defence spending.
Shares of German arms makers Rheinmetall, Hensoldt and Renk jumped 2.6 percent, 2.5 percent, and 6.1 percent respectively.
Thyssenkrupp rose six percent after its CEO said the group would hold a shareholder meeting ahead of warship division spin-off.
($1 = 0.9549 euros)
