Europe midday: Stoxx down as tech shares come under pressure

(Sharecast News) - European shares were lower on Tuesday and oil prices rose slightly amid reports that a tanker had been hit in the Strait of Hormuz while tech stocks fell on another sell-off in Asia driven by persistent worries over AI valuations.

The pan-regional Stoxx 600 was down 0.17% to 649 at 1156 BST. Major bourses were mixed, with Germany's DAX down0-65%, while France's CAC 40 gained 0.22% and Britain's FTSE 100 rose 0.18%

Brent crude moved back above $72 a barrel on a report that a liquefied natural gas carrier was hit by a projectile near the Omani coast as it exited the strait on Tuesday.

"The incident revives regional security concerns despite the late-June peace agreement and underlines why markets have been too quick to fully discount the Hormuz risk premium," said Patrick Munnelly at Tickmill Group.

"Shipping flows may have improved, but one projectile is enough to remind investors that energy tail risk has not disappeared."

Meanwhile, tech stocks were under pressure after trade on South Korea's stock market was temporarily halted with the Kospi index down by as much as 8% at one point. Samsung shares plunged 10% despite the electronics giant reporting a surge in profits.

The news hit European tech stocks such as ASML Holding, STMicroelectronics, Infineon and BE Semiconductor.

Siemens Energy fell after being cut to 'underweight' from 'neutral' by Barclays.

Shell shares rose 2.2% after the energy giant lifted its integrated gas production outlook.

Reporting by Frank Prenesti for Sharecast.com