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LONDON — European bourses traded lower on Tuesday as global markets pull back on renewed concerns over artificial intelligence-linked stocks.
The pan-European Stoxx 600 was down 1.5% at 2:42 p.m. in London (9:42 a.m. ET) after notching its lowest level in a month. All major bourses and sectors traded in negative territory during afternoon deals.
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 negative territory. On Tuesday, New York-listed shares continued their decline, with major averages all opening lower.
Looking at individual stocks, Intermediate Capital Group advanced 5.3% on Tuesday 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%.
Akzo Nobel fell 2.5% after the Dutch paint and performance coatings maker announced a merger with Philadelphia-headquartered Axalta Coating Systems.
Swiss drugmaker Roche, meanwhile, gained 7.7% after reporting positive results from the Phase III trials of its new breast cancer pill. Separately, Novo Nordisk was down 1.6% 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 in negative territory, with the Stoxx 600 Health Care Index last seen down 0.6%. Elsewhere, the Stoxx 600 Basic Resources index slid 2.8%, while autos fell 2.8% and banking stocks lost 3.1%.
AI concerns
Investors stateside are awaiting delayed jobs data this week as well as Nvidia‘s latest earnings report, due Wednesday. The chipmaker, whose stock fell 2.6% on Tuesday morning, 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.
— CNBC’s Pia Singh contributed to this market report.
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