European Markets Edge Lower; Bank and AI Stocks Weigh on Indices
European stock markets closed slightly lower on Wednesday (August 19) as banking stocks and the artificial intelligence (AI) sector came under pressure. The Euro STOXX 50 index fell 0.2% to 6,454, while the STOXX Europe 600 closed relatively flat at 652.
The banking sector was a major drag on the market, even as long-term bond yields began to fall following the US Treasury Department's decision to double its Treasury buyback program. Shares of BNP Paribas and ING each fell by approximately 2.4%, while Santander, UniCredit, and Intesa Sanpaolo declined by around 1.3%.
Pressure was also evident in technology stocks. ASML dropped about 2.2%, while Infineon slumped 4%, tracking weakness in the US AI infrastructure sector. Sentiment toward tech stocks soured after earnings reports from AI companies sparked concerns that growth in the sector might be becoming uneven.
In contrast, consumer sector stocks performed better. Inditex and LVMH both rose by around 2%, helping to limit the decline of major European indices amidst the pressure from banking and semiconductor stocks.
A surge in gold prices also provided a boost to mining stocks in London. Rio Tinto rose about 4% and Glencore gained 5%, as falling yields and a weaker US dollar drove a sharp rise in the price of gold.
Source: Newsmaker.id
