Millennium Wheel And Skyline At Sunset. London, England.
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LONDON — European bourses opened lower on Tuesday as global markets pull back on renewed concerns over AI-linked stocks.
The pan-European Stoxx 600 was trading 1.3% lower at 8:25 a.m. in London (3:25 a.m. ET).
Europe’s regional markets followed their global counterparts into the red after tech losses dragged Wall Street lower on Monday with the three major U.S. indexes closing in the red; the 30-stock Dow Jones Industrial Average plunged more than 550 points, or 1.2%, while the S&P 500 and Nasdaq Composite each lost around 0.9%.
Intermediate Capital Group surged 8% in early trade on Tuesday, leading the Stoxx 600, after Amundi said it was taking a near-10% stake in the London-listed global private equity and alternative asset manager. French investment management giant Amundi saw its share price slide 3.2%.
Akzo Nobel fell 2.6% after the Dutch paint and performance coatings maker announced a merger with Philadelphia-headquartered Axalta Coating Systems.
Swiss drugmaker Roche gained 6.3% on Tuesday morning after reporting positive results from the Phase III trials of its new breast cancer pill. Meanwhile, Novo Nordisk was down 1.6% in morning trade, after the Danish drugmaker said it would bring forward a plan to cut the monthly price of its obesity shot Wegovy in the U.S. from $499 to $349. The price reduction had been scheduled to begin in January under an earlier agreement with U.S. President Donald Trump.
Overall, healthcare stocks were the standout positive among European sectors on Tuesday, with the Stoxx 600 Health Care Index adding 0.1%. In contrast, the Stoxx 600 Basic Resources was hit hardest by the sell-off, sliding 2.9%, while banks shed 2.3%.
Investors stateside are awaiting delayed jobs data this week as well as Nvidia‘s latest earnings report, due Wednesday.
The chipmaker, whose stock declined 2% yesterday, has been at the center of a debate about the strength of the artificial intelligence-powered market rally this year.
Concerns have grown about weak market breadth, pricey tech valuations and the soundness of AI fundamentals due to a boom in Big Tech debt offerings and the pace of AI chip depreciation.
Asia-Pacific markets fell overnight while U.S. stock futures were little changed.
In Europe on Tuesday, earnings come from Siemens Energy and Imperial Brands. There are no major data releases.
— CNBC’s Pia Singh contributed to this market report.