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Car Manufacturing Stocks Up in Europe Despite the Onset of Tech Selloff

Over the years, the biggest tech companies in the world have been spooked by a wide range of anti-trust actions brought on by the local regulatory authorities. In a sensational development, the regulatory authorities in the United States regulatory authorities initiated anti-trust action against Google and other tech majors operating in the country. Needless to say, once the news spread, a stock selloff ensued on Tuesday and most of the large-cap stocks recorded significant drops. However, selloffs of this nature in the United States is hardly ever restricted to the local markets and soon spread to other markets. As expected, the tech selloff soon spread to the stock market in Europe.

The 600 index in Europe was down by 0.3% in early morning trade and the tech sector alone shed as much as 1.6%. The losses were at par with what happened in the United States and the markets in Asia after the news broke about the anti-trust action. The regulatory authorities in the U. S. initiated anti-trust action against two of the giants of the tech industry in the form of Alphabet Inc and Amazon. However, that is now the end, and according to sources who are close to the developments, Facebook and Apple could soon be slapped with actions as well.

Experts in Europe are not happy about the actions, and one of the economists stated,

The United States is starting to cause more red tape on tech companies. This will affect all companies that do business with tech, and that will cause a ripple effect in Europe.

Despite that comment, it is important to point out that the European Union has an extremely strong anti-trust watchdog as well, and over the year, it has been involved in a highly public skirmish with Google. However, despite the pain in the tech sector, car manufacturing stocks rose and brought some cheer to the European markets. Daimler and Volkswagen, the two biggest car manufacturers in Germany and Europe, experienced gains of 2.5% each during the auto rally.

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Jodie Miller

Jodie Miller is experienced journalist. She holds double degree in journalism and communication. She joined our team as a content curator. She enjoys writing and curating contents related to finance and forex world.
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