Live Markets: Before the bell: rotation out of AI rolls on ahead of BoE

STMicroelectronics

Today 07:50

Adds blog post
EuroSTOXX50 futures up 0.3%
BoE decision awaited
Oil falls for a fourth day
Nasdaq futures lower
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BEFORE THE BELL: ROTATION OUT OF AI ROLLS ON AHEAD OF BOE    
European shares were set for a firmer start on Thursday, with attention turning to the BoE later in the day, as investors reposition after Democrats swept the US midterm elections.
Euro STOXX 50 .STOXX50E futures were up 0.3% and FTSE 100 .FTSE futures rose 1.2%, extending a bank-driven rally that left the pan-European STOXX 600 .STOXX within sight of its August record high. Lower oil prices and falling bond yields provided support.
A rotation trade continued to ripple through global markets.
In Asia, investors dumped AI-linked stocks, hitting Samsung Electronics 005930.KS and SK Hynix 000660.KS, while Chinese tech giants Alibaba 9988.HK and Tencent 0700.HK jumped over 6%. Deutsche Bank said there was "a big rotation from data centres to everything else across the globe."
In Europe, chips remained under pressure in premarket trade, with ASML ASML.AS and STMicro STMPA.PA both down around 3%, while banks .SX7E, more cyclical and China-exposed stocks were in favour. Tech-heavy Nasdaq futures fell 1%.
Energy .SXEP looked weak asBrent crude fell for a fourth day on expectations President Donald Trump's Congressional defeat may reduce the risk of further escalation of the war on Iran, potentially reducing inflation pressures.
Defence shares could stay under pressure. Investors are questioning whether a Democratic Congress will support the scale of military spending envisioned by the Trump administration. 
Rheinmetall RHMG.DE fell 8% after cutting its 2026 sales forecast for the second time in three months, saying it no longer expected a contract award this year for the Arminius Boxer vehicle programme.
AstraZeneca AZN.L reportedly made an offer of about $10 billion to acquire obesity drugmaker Rhythm Pharmaceuticals RYTM.O. 
(Danilo Masoni)
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