Chip stocks plunge as Air France-KLM rises more than 12%
European chipmakers suffered their worst trading day since March 2020, while Air France-KLM shares rose more than 12 per cent as investors welcomed KLM’s cost-cutting plans.
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Shares in European chipmakers plunged on Thursday, with Amsterdam-listed ASML, ASMI and Besi each losing as much as 7 per cent, as investors worried that a Democratic victory in the US Congress could affect the artificial-intelligence boom. The sector had its worst trading day since the March 2020 coronavirus crash, according to ANP and Bloomberg.
Air France-KLM shares moved sharply in the opposite direction, gaining more than 12 per cent. Investors welcomed KLM’s plans to cut costs, which include reducing its workforce by about 5,000 — nearly 15 per cent of staff — as well as outsourcing work, dropping some Airbus aircraft and seeking limits on wage rises through talks with unions.
The rise follows a separate 10 per cent jump in Air France-KLM shares after the group reported higher quarterly profits and KLM announced the job-cut plan.
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