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European stocks traded lower on Thursday after three straight gains, as technology companies and miners declined.
The Stoxx Europe 600 SXXP, -0.69% traded 0.5% lower, with decliners including Dutch microchip equipment maker ASML ASML, -3.59% and Anglo-Australian miner Rio Tinto RIO, -2.80%.
European stocks have fared better than U.S. and Asian equities as bond yields TMUBMUSD10Y, 1.469% have surged. Over the last month, the Stoxx Value index STVP, -0.82% has surged 7%, while the technology-heavy Nasdaq Composite COMP, -2.70% has dropped 5%.
“While one can understand why investors are concerned about valuations in the U.S., particularly around the tech sector which has driven a lot of the gains in the U.S. over the past few years, against a background of rising yields, the same can’t be said in Europe where valuations are much lower,” said Michael Hewson, chief market analyst at CMC Markets U.K.
U.S. stock futures ES00, -0.43% edged lower ahead of an eagerly awaited address from Federal Reserve Chair Jerome Powell, which will occur shortly after European stock markets close at noon Eastern. The S&P 500 SPX, -1.31% closed Wednesday with a 1.3% loss, and has slipped four of the last five sessions.
Of stocks in Europe on the move, ProSiebenSat.1 PSM, -5.00% dropped 7% as the German broadcaster issued a cautious outlook, saying advertising revenue may drop as much as 2% in 2021 against expectations of a 6% advance.
U.K. insurer Aviva AV, +1.83% rose 4% as the company continued its selling spree, reaching a deal to sell its remaining Italian assets to Allianz ALV, -0.31% for €873 million as it also recorded a stronger-than-forecast operating profit.
