(Bloomberg) — European stocks were subdued as fears about the disruptive impact of artificial intelligence on industrial software canceled out a rebound in bank shares. Dassault Systemes dropped 10%.
The Stoxx Europe 600 Index was little changed at the close. Along with banks, telecom and insurance stocks outperformed while media and technology shares led declines. Trading volumes were 33% lower than the 30-day average, according to data compiled by Bloomberg, with markets in the US and China closed.
Dassault Systemes wasn’t alone in suffering from a renewed bout of AI anxiety. Siemens AG shares slid 6.4%, while SAP SE dropped 2%.
“The perception of AI seems to have changed completely from the angel of mercy to the kiss of death,” said Stephan Kemper, chief investment strategist at BNP Paribas Wealth Management.
Europe’s benchmark index is hovering below last week’s record high. Earnings season has been mixed, marked by overall healthy profit growth yet fierce punishment for companies that didn’t meet market expectations. The spread of AI disruption fears far beyond tech is underscored by a near doubling in the number of mentions of the term during management calls compared to the previous quarter.
In other individual stocks, NatWest Group Plc rose 4.8% after Citigroup Inc. analysts raised their target for the UK lender to a street-high. German online broker FlatexDEGIRO SE fell 6.9% after its rating was downgraded to neutral from outperform at BNP Paribas.
For more on equity markets:
You want more news on this market? Click here for a curated First Word channel of actionable news from Bloomberg and select sources. It can be customized to your preferences by clicking into Actions on the toolbar or hitting the HELP key for assistance. To subscribe to a daily list of European analyst rating changes, click here.
–With assistance from Michael Msika.
More stories like this are available on bloomberg.com
