FRANKFURT/AMSTERDAM (dpa-AFX) - Ahead of important interest rate meetings of major central banks and landmark quarterly reports, investors in technology stocks became more cautious on Monday. After a recent good run, Europe's Stoxx Europe 600 Technology sector index slumped nearly 3 percent to start the week. It is coming off its highest level since April 2022, making tech stocks the weakest sector on Monday and dragging down stock markets overall. But the sector is still up about 14 percent year-to-date.

Tech stocks are considered particularly sensitive to interest rates, making investors nervous ahead of upcoming interest rate decisions by the U.S. Federal Reserve, the European Central Bank and the Bank of England. In addition, tech giants Meta, Amazon, Alphabet and Apple all report financial results during the week, which should send important signals for the sector.

Tech investor Prosus was subsequently the bottom performer in the EuroStoxx with losses of 6.7 percent. Chip supplier ASML also fell sharply by 3.6 percent. Here in Germany, Infineon slumped 3 percent. The Bavarian company will present figures on Thursday.

Additional headwind came from reports of restrictions on chip shipments to China. As the Bloomberg news agency recently reported, Japan and the Netherlands, two other major chip locations, plan to join the U.S.'s planned export restrictions on China. According to analyst Amit Harchandani of the U.S. bank Citigroup, concerns about a complete export stop of lithography equipment are thus increasing, which puts market leader ASML under pressure.

However, ASML itself stressed that the new regulations should not have a major impact on sales in the current year. Moreover, it will still take time for the regulation to find its way into legislation, he added. Indirect effects of the restrictions on ASML, however, should weigh on sales by 5 percent, wrote Alexander Duval of U.S. investment bank Goldman Sachs. If the Netherlands does indeed join the export restrictions now, the consequences for ASML are likely to be even more direct and extensive./niw/ag/mis