European Markets Stumble as Geopolitical Risk Clashes With AI Gains

The broader market malaise was countered by a flurry of activity in the technology and industrial sectors. ASML shares climbed 2% after the Dutch semiconductor giant raised its 2026 outlook, buoyed by the same relentless demand for artificial intelligence infrastructure that pushed TSMC to a 77% surge in quarterly profit. This optimism extended to the advertising sector, where Publicis reported a 1.4% gain, citing significant growth in its AI-driven marketing services.

Corporate dealmaking provided further volatility. Swiss engineering firm ABB moved to acquire British automation specialist Rotork in a $5.5 billion deal, sending Rotork shares soaring by 66%. Simultaneously, Uber launched a $14.8 billion takeover bid for Delivery Hero, though the German firm’s stock cooled as the market processed the offer. While these corporate fundamentals remain robust, investors are increasingly wary that prolonged regional conflict in the Middle East could force central banks to rethink interest rate trajectories if energy prices continue to climb.