European stocks stabilise after tech-driven rout

© Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, September 28, 2021. REUTERS/Staff

(Reuters) – European stocks steadied on Wednesday after one of the worst market routs this year, with investors turning to defensive healthcare stocks amid lingering concerns about growth and inflation.

The pan-European STOXX 600 index rose 0.8% after shedding 2.2% on Tuesday in their biggest percentage daily decline since mid-July.

In a widespread risk-off sentiment, global stocks tumbled in the previous session as government bond yields surged on growing expectations of faster interest rate hikes and steered investors away from high-growth technology stocks.

European tech sector remained under pressure, up just 0.5% after losing 4.8% on Tuesday.

ASML Holding (NASDAQ:ASML) NV, one of the key suppliers to computer chip makers, slipped 1% despite raising financial targets.

Casting a shadow on the sector, U.S. chipmaker Micron Technology (NASDAQ:MU) warned overnight that shipments for its memory chips were set to dip as its customers making personal computers face shortages of other parts.

British drugmaker AstraZeneca (NASDAQ:AZN) gained 2.3% after it said its newly acquired Alexion (NASDAQ:ALXN) division will purchase the remaining equity in drugmaker Caelum Biosciences in a deal that could be worth up to $500 million.