[MARKET ANALYSIS] European bourses mixed, with tech slumping following selling in Asia; Volvo Car falls after highlighting China weakness, Burberry reports sales growth

European bourses (STOXX 600 -0.4%) are broadly lower, following on from the weakness in Asia (Nikkei -4%, Hang Seng -2.1%). FTSE 100 (+0.4%) is the outperformer, while underperformance seen in the AEX (-0.7%) and FTSE MIB (-0.5%).
Tech (ASML -4.2%, STMicroelectronics -6.6%) is the clear underperformer following the sharp selloff overnight in APAC names, as worries of stretched valuations persist. Despite the selloff, this week has been broadly positive in the tech space, with both TSMC and ASML reporting strong Q2 figures that beat estimates. Today's weakness just shows that, despite positive news, concerns over the AI capex and its current momentum persist.
In terms of the broader sector space, the bias is mixed. Utilities (+1.6) top the sector pile, followed by Food, Beverages & Tobacco (+1.1%) and Real Estate (+1.0%). Outside of Tech (-2.3%), Basic Resources (-1.4%) and Banks (-1.0%) are the sector laggards.
Key movers: Volvo Car (-6.3%), Q2 metrics missed estimates and dropped its FY volume growth guidance after a sharper downturn in China; Burberry (-4%), Q1'27 comparable sales grew but slightly missed expectations; Saab (+3.5%), Q2 revenue and order bookings beat expectations and backed its medium-term guidance.
US equity futures are lower across the board, with underperformance in the NQ (-1.8%), given the tech weakness overnight. After-hours, Netflix (-9% after-hours) reported Q2 earnings that came broadly in-line with expectations, but investors were left disappointed by its earnings forecast, with Q3 EPS and Revenue guidance missing estimates. For SpaceX (-4.6% after-hours) , shares fell below its IPO price of USD 135 for the first time on Thursday after the launch of Flight 13 was aborted.