European stocks fall amid sell-off in auto and tech sectors

Al-Eqtisadiyah from Riyadh

Friday, July 17, 2026 20:19 | 2 minutes read

European stocks closed lower on Friday, amid a broad sell-off in the auto and technology sectors, coinciding with renewed trade and geopolitical concerns that prompted investors to reduce their positions in high-risk assets.

The pan-European Stoxx 600 fell by 0.34% to 641.54 points, while the German DAX index fell 0.35% at close.

France's CAC 40 recorded losses of 0.47%, reaching 8,338.81 points, while the UK's FTSE 100 recorded less severe losses supported by energy and commodity stocks.

The auto sector was affected by fears of new tariffs on European imports including cars, steel, and industrial products.

Shares of companies such as Volkswagen, BMW, and Mercedes came under pressure after rising concern over the possibility of tougher US tariffs on European auto imports.

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Similarly, technology stocks came under pressure, affected by a global decline in semiconductor stocks, amid fears of slowing demand for electronic chips and profit-taking after the sector's gains in recent months.

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Risk aversion increased amid ongoing trade and geopolitical tensions, prompting investors to reduce their exposure to stocks and move towards safe-haven assets, as traders await economic indicators that may signal the future path of interest rates.

Analysts believe that the current pressures reflect a mix of concerns related to global trade, declining risk appetite, as well as anxiety over the impact of any new trade restrictions on European export-dependent companies, especially German carmakers.

Investors' attention in the coming days will be on any developments regarding US trade policies, as well as economic data and central bank meetings, to assess their implications for growth and earnings expectations in Europe.

Tariffs