European stock markets fell on Tuesday, with Asmack orders falling short of expectations and falling energy stocks as a drag.

The Stoxx Europe 600 Index closed down 0.8% in the London market, but it is still only one step away from the record high set on September 27. Asmack, which released its earnings report earlier, fell sharply by 16%, dragging technology stocks lower. The technology sector fell 6.5%, the biggest decline in about four years.

Energy stocks have fallen sharply with oil prices. Earlier reports suggest that Israel will not attack Iran's energy facilities for the time being. At one point, the sector index fell 3.5%.

Swedish telecom equipment manufacturer Ericsson rose nearly 11%, and previously announced results that exceeded analysts' expectations. Meanwhile, LVMH, which announced results after closing, said that sales in its largest business unit declined for the first time since 2020, and are expected to increase slightly, kicking off the earnings season for the European luxury goods industry on a sluggish tone.

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According to the Bank of America European Fund Managers Survey, investors expect the European stock market to face an upward trend in the near future. 27% of respondents believe that the region's cyclical stocks will outperform defensive stocks. This ratio is the highest since June.

Yann Azuelos, senior portfolio manager at Mirabaud, said, “Given the geopolitical risks, this seems a bit complacent to us.”

Although data to date shows that the Eurozone economy is cooling moderately rather than rapidly, concerns about France's fiscal situation and Germany's economic downturn are growing. According to the survey, Germany is experiencing a moderate recession, and output will remain flat throughout 2024 — underscoring the weakness of Europe's largest economy.

Economists surveyed by Bloomberg believe this decline could cause the ECB to cut interest rates later this week.