European shares fell for a second straight day on Tuesday as oil prices climbed again and investors turned to earnings from key AI companies. Brent hit a five-month high above $110 a barrel.
European stocks fell for the second straight day on Tuesday, as another rise in crude oil prices kept risk sentiment in check. The pan-European STOXX 600 dipped 0.6% after dropping close to 1% on Monday.
Semiconductor companies in Europe, including ASML and ASMI, fell more than 3%. Investors are watching results from key AI bellwether companies later this week.
Brent reaches a five-month high above $110
Crude prices resumed their climb, with Brent hitting a five-month high above $110 a barrel. Yemen's Iran-aligned Houthis said on Monday they launched several attacks on Saudi energy, airport and military targets.
The dollar index fell 0.2% to 101.77, and the euro rose 0.2% to $1.122. The Japanese yen strengthened 0.2% after an auction of long-dated Japanese government bonds drew record demand.
French protests keep deficit worries in focus
Yields on French government bonds edged lower after their biggest one-day jump in about a month. Cities were calm overnight under curfews, but protest groups announced a new round of demonstrations next Saturday.
SEB economist Pia Fromlet said: "The weekend’s protests have further intensified concerns about French public finances". French stocks showed no signs of respite and fell in line with the broader market.
AI spending under scrutiny as earnings arrive
South Korean AI infrastructure company Elice Group dropped nearly 30% in its market debut, falling below its IPO price. SpaceX and Netflix report quarterly earnings on Tuesday, with Meta and Tesla scheduled later in the week.
Ninghui Liu of State Street Investment Management said investors accept greater AI use but question whether each dollar of AI capex earns more than it costs to finance.
Elsewhere, gold fell 0.4% to $4,122 an ounce, while bitcoin dropped 0.7% to $81,339.5 and ether eased 0.6% to $2,383.4. Several European Central Bank officials, including Martin Kocher and Olli Rehn, and Bank of England policymaker Megan Greene speak on Tuesday, and their words may help shape rate expectations.
Source: Investing.com
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