Finance

European semiconductor and tech firms experienced notable declines following the sudden resignation of Nvidia CEO Jensen Huang, which triggered widespread uncertainty regarding the trajectory of artificial intelligence infrastructure spending. Major regional players felt the brunt of the global sell-off, with ASML and Infineon dropping significantly. Despite the immediate pressure on chipmakers, Europe's relatively low aggregate exposure to tech stocks shielded its main indices from the more severe routs seen in Asian and American markets.

Corporate earnings continued to serve as a vital pillar of support for European equity markets, highlighted by solid gains across the insurance and energy sectors. Insurance heavyweights Allianz and Munich Re advanced after exceeding their quarterly earnings targets, while AXA also recorded positive momentum. Concurrently, major oil producers like Eni and TotalEnergies rose, capitalizing on a late rebound in crude oil prices.

Macroeconomic sentiment across the continent remains clouded by persistent inflationary pressures, with consumer price growth reaching 4.0% according to recent data. The primary driver of the headline acceleration continues to be the energy sector, where annual inflation climbed sharply due to elevated natural gas and crude costs linked to Middle Eastern geopolitical developments. These sticky consumer prices, coupled with modest economic expansion, are reinforcing expectations that the European Central Bank may face pressure for further monetary policy tightening.