European stocks fall amid tech selloff, AI rivalry

European stocks began the week on a weaker footing, with the STOXX 50 dropping 1% and the STOXX 600 losing 0.6%, pressured by a global tech selloff amid concerns over US dominance in AI.

European stocks fall amid tech selloff, AI rivalry

Attention turned to Chinese company DeepSeek, whose latest AI model, touted as cost-effective and compatible with less-advanced chips, has gained traction. Its AI Assistant surpassed ChatGPT as the top-rated free app on the US Apple App Store. Significant losses were recorded in tech and industrials, with SAP (-1.1%), ASML Holding (-7.5%), Siemens (-3.5%), and Schneider Electric (-7%) lagging. Meanwhile, markets are watching Trump’s policies following a controversial incident with Colombia over the weekend.

Key data, ECB decision, and major earnings ahead

The week ahead features key economic data, including GDP growth figures and the ECB’s monetary policy decision. On the earnings side, Ryanair shares climbed over 2% after a Q4 profit beat, while results from LVMH and ASML are highly anticipated later this week.