European Stocks Fall as DeepSeek Worries Boost Tech Sector
European stocks fell, led by the technology sector, amid concerns that Chinese artificial intelligence startup DeepSeek could shake up the field’s current leaders. Chip equipment maker ASML Holding NV slumped.
The Stoxx Europe 600 Index was down 0.8% as of 8:20 a.m. in London. The technology sector slumped 4.3%, its worst since October, as ASML dropped more than 9% and other semiconductor stocks tumbled. DeepSeek’s latest AI model caused a stir over the weekend, casting doubt on the lofty valuations of AI-related companies.
“The excitement over DeepSeek has raised the first question mark over U.S. AI dominance,” said Daniel Murray, chief executive of Zurich, Switzerland-based EFG Asset Management. Among other single stocks, SGS SA rose while Bureau Veritas SA fell after the pair ended talks on a potential merger. Ryanair Holdings Plc rose after the low-cost carrier reported earnings that beat estimates.
Traders continue to watch the region’s earnings season and the European Central Bank’s interest rate path for clues on further drivers of economic growth. Later this week, the ECB is seen cutting rates for a fourth straight meeting amid a subpar euro zone economy, while the U.S. central bank is widely expected to keep rates steady.
Investors are also trying to track President Trump’s tariff threats. News in Colombia, where Trump announced massive tariffs before abruptly walking back the threat, “highlights the volatility that markets have to deal with,” said Mohit Kumar, chief economist for Europe at Jefferies International.
Source: Bloomberg
