British, German and French benchmarks climbed on Tuesday after shaking off an early tech-driven sell-off that followed reports of Chinese progress in domestic chipmaking equipment. Asian indices took the steeper losses, with South Korea’s Kospi dropping more than 10% and Japan’s Nikkei falling more than 4%. Barclays and Unilever both beat forecasts in London.
British stocks gained on Tuesday, recovering from an early tech-driven sell-off after reports of Chinese progress in domestic semiconductor manufacturing equipment rattled global markets. As of 03:40 ET (07:40 GMT) the FTSE 100 was up 0.22%, having pared earlier losses, while Germany’s DAX added 0.29% and France’s CAC 40 gained 0.42%. Sterling held near flat against the dollar, with GBP/USD at 1.33051, up 0.05%.
China chipmaking report drives the tech slide
Technology stocks bore the brunt of the initial pressure after reports that Beijing had made significant strides in developing homegrown chip equipment. The rout in AI stocks followed a report by The Information that China has begun mass production of homegrown deep ultraviolet, or DUV, chipmaking tools.
Nvidia dropped 5% on Monday, giving Apple back its top spot as the world’s biggest listed company. AMD also traded lower in U.S. pre-market hours.
Morningstar equity analyst Jing Jie Yu said the market was likely spooked by the progress of China’s chipmaking equipment capabilities, and described the move as “largely a knee-jerk reaction and overdone”.
Kospi falls more than 10% as Samsung and SK Hynix slide
The weakness rippled through Asia. South Korea’s Kospi dropped more than 10% on Monday, with trading halted at one point, while Japan’s Nikkei 225 fell more than 4%.
Shares in SK Hynix and Samsung Electronics both fell by more than 10%. Hong Kong’s Hang Seng and China’s Shanghai Composite posted more modest losses, and Australia’s S&P/ASX 200 closed in positive territory.
Barclays and Unilever beat forecasts in London
Barclays reported a better-than-expected 17% rise in first-half profit, raised its 2026 income guidance and announced a larger-than-expected £1 billion share buyback, helped by strong equities trading and investment banking income.
Unilever, a FTSE 100 group, beat second-quarter sales growth estimates on higher volumes and pricing and raised its 2026 underlying sales growth outlook as demand for its beauty, home care and household brands remained resilient. Its shares were up 5% in morning trading.
Sources: Investing.com, The Guardian
Trading involves risk.
Risk Disclaimer
