European Stocks Poised for Higher Open

European equity indices closed sharply lower from records on Tuesday as a selloff in the tech sector drove markets to trim their position in risk. The Euro STOXX 50 fell 1.2% to 6,235 and the STOXX Europe 600 dropped a softer 0.5% to 636. ASML slipped 5.5% and Infineon lost 5.8% amid concerns that hyperscalers overspent on AI infrastructure and will be forced to slow expenditure should returns fail to match their guidance. The latest triggers were more cash being raised by SpaceX after its IPO, while Korean SK Hynix announced it would slow production of AI chips to allocate capacity on commodity DRAM chips. Industrial giants with exposure to datacenter projects also retreated, with Siemens and Schneider dropping 2.5% and 4%, respectively. On the other hand, pharmaceuticals closed higher, with Sanofi gaining 1.5% after the EU approved its Cenrifki treatment. PMI data reflected a softer-than-expected contraction in the Eurozone private sector activity.

European equities traded lower on Tuesday, with the STOXX 50 declining 0.9% and the STOXX 600 falling 0.8%, as a broad-based sell-off in technology stocks weighed on sentiment following weakness on Wall Street yesterday. Investor concerns are growing that the technology sector's strong rally may have become overstretched, with increasing questions around AI-related investments and valuations. Tech stocks were among the worst performers, including STMicroelectronics (-4.7%), ASML Holding (-3.5%), and Infineon Technologies (-3.3%). The mining sector was another notable laggard, namely Anglo American (-3.6%), Glencore (-3.4%), and Rio Tinto (-2.9%). In contrast, healthcare stocks outperformed. Sanofi gained 1.5% after the EU approved its Cenrifki treatmen. On the macroeconomic front, preliminary PMI data from Germany came in below expectations, reinforcing concerns about continued weakness in private-sector activity and the broader economic outlook.

European equity markets were set to open lower on Tuesday, after closing at fresh records in the previous session, as attention continued to remain on US–Iran peace negotiations and political developments in the UK. The US Treasury issued a 60-day license authorizing the production, shipment, and sale of Iranian oil, pushing crude prices to a three-month low. Still, Iran’s nuclear program remains a major source of uncertainty, following Vice President JD Vance’s claim that Tehran had agreed to host nuclear inspectors, which Iranian authorities have denied. On the economic front, markets will be closely monitoring the latest PMI data across the region, due out later today. In premarket trading, Euro Stoxx 50 and Stoxx 600 futures were 0.9% and 0.7% lower, respectively.