Live Markets: Before the bell: it's risk off in Europe

Bureau Veritas SA

27/01/2025 07:48

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    BEFORE THE BELL: IT'S RISK OFF IN EUROPE  
    European shares were set for a sharply lower start on Monday as traders fretted over the
impact of a low-cost Chinese artificial intelligence app on high-flying Western tech stocks.
    Frankfurt-listed shares in ASML  ASML.AS , which releases its numbers on Wednesday, and
other local AI darlings like Schneider Electric  SCHN.PA  and Siemens Energy  ENR1n.DE  declined
over 3%. That pushed EuroSTOXX50 futures down 1.3% in their sharpest drop in almost 6 weeks.
    Software maker SAP  SAPG.DE , which also has results this week, fell 1.7% in Frankfurt. MAG
7 stocks in Frankfurt were hit even harder, led by a slump in Nvidia  NVDA.O  shares. Nasdaq
futures fell 2.6%.  NQCv1  
    Illustrating the risk-off mood, Bitcoin  BTC=  fell 6%.    
    Meanwhile the start of the earnings season in Germany offered no big cheer. The country's
top chemical maker BASF  BASFn.DE  reported a big miss in annual earnings, weighed by
impairments on battery materials and restructuring costs.     
    Elsewhere, budget airline Ryanair  RYA.I  beat profit forecasts thanks to improving fares,
but revised down its passenger outlook on Boeing aircraft delivery delays.   
    In M&A, Swiss testing and inspection group SGS  SGSN.S  ended talks over a potential $30
billion merger with French rival Bureau Veritas  BVI.PA  after the two failed to reach a deal.
    
    (Danilo Masoni)
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