European markets traded flat to lower in choppy sessions, pressured by a combination of retreating technology shares and escalating energy costs.
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Technology Sector Pullback: Major European tech shares slumped roughly 1.4%, tracking losses in Asian peers after leading artificial intelligence executives—including Anthropic CEO Dario Amodei—publicly called for a slower, more cautious pace in developing advanced model capabilities due to security and misuse risks. Prominent regional chipmakers and tech firms absorbed heavy losses, with Germany’s Infineon dropping 5.8% alongside Dutch equipment giants ASML (-4.4%) and ASMI (-5%).
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Crude Oil Surge & Geopolitical Pressures: Broad risk appetite was further restricted by a sharp 2% jump in oil prices. Fresh supply fears intensified following new Houthi strikes targeting Saudi infrastructure and Iranian attacks on commercial shipping vessels in the Gulf, compounding acute structural deficits triggered by prior pipeline closures. While broader indices slipped, the European energy sector bucked the trend, registering modest gains.
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Central Bank Focus: Investor attention remains locked on upcoming monetary policy announcements—most notably the U.S. Federal Reserve’s impending rate decision, where markets are increasingly pricing in a 25-basis-point hike, following the European Central Bank’s recent rate action.
